USDCAD: Bullish above 1.3425
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3365 or 1.3345.
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 1.3463 or 1.3479 or 1.3493.
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 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 wrote last Thursday that I could see the round number at 1.3300 now acting as probable support and holding the price again after a bearish retracement. The fact that we failed to get any bearish follow-through after the very strong downwards day at the end of last week suggested that the price was going to tend to move up.
I also thought that a break above 1.3365 would be a very bullish sign. I would take a bullish bias if that happens, or if we got a strong bullish bounce following a retracement to either 1.3306 or 1.3277.
I was right about the round number at 1.3300 though unfortunately I was looking to 6 pips higher.
The picture now is much more bullish as the USD has strengthened and all the commodity currencies including the CAD are relatively weak. If the price can push up to new highs today it has a good chance to keep going until the cluster of resistance levels just under 1.3500. That is a big number and should hold the price today so those resistance are good points at which to take profit on any long trade taken today if it goes well.
There is nothing important due today concerning either the CAD or the USD.