USDCAD: Bullish but 1.3529 remains resistant
Yesterday’s signals were not triggered, as there was no bearish price action at 1.3529.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm New York time today.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3463.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Short entry after the next bearish price action rejection following the next touch of 1.3529.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 wrote yesterday that we were finally getting new long-term high prices, although we really needed to hold up past 1.3529 for a true breakout. The picture was looking much more bullish and the odds were with the bulls now. We may be seeing the start of a bullish trend worth paying attention to.
This was a correct call as the price is higher than it was 24 hours ago. I was correct also to see the resistance at 1.3529 as a serious obstacle to a further advance, as although the price traded above that level for a while, it could not hold above it, so I see that resistance level as still valid.
The price has been quietly retracing over recent hours. Another bullish attempt at 1.3529 is probably going to happen later today or over the coming days. I would take a bullish bias if the price can trade above 1.3529 for a couple of hours consecutively.
The slightly more upbeat than expected approach taken yesterday by the Bank of Canada appears to have had little effect upon the price.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.
Concerning the CAD, there will be a speech from a member of the Bank of Canada at 7:15pm.