USDCAD remains trapped in a month-long price range
Yesterday’s signals were not triggered as neither of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3376 or 1.3338.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade
Go short after the next bearish price action rejection following the next touch of 1.3529.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CAD Analysis
I again noted yesterday that the price has been consolidating within this range from about 1.3376 to 1.3520 for almost one month now. This makes a breakout more likely to be explosive when it finally comes.
I was and still am ready to get bullish once the price starts closing above 1.3529 or even 1.3500 but until then I think it wise to stand aside unless you want to try fading the extremes of the range.
The picture today is more bearish as we approach the two support levels which make up the lower boundary of this range. Long trades from bullish reversals at either of these levels could be a great trade if this range holds.
There is high impact data for both currencies in this pair due later, so we are likely to see a lot of unpredictable volatility which might give an entry on a price spike to either or both of the support levels.
I take no directional bias on this pair until we break out of this month-long price range.
Regarding the CAD, there will be a release of Core Retail Sales data at 1:30pm London time. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm.