USDCAD: Bearish trend halted at 1.3055
Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.3093.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered prior to 5pm London time today.
Long Trade Ideas
- Go long after the next bullish price action rejection following the next touch of 1.3082 or 1.3055.
- 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 run.
Short Trades Ideas
- Go short after the next bearish price action rejection following the next touch of 1.3153.
- 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 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 despite the bearish picture we could be seeing the start of a major bullish reversal as the support at 1.3055 continues to hold. The price has now moved up, with the strong Canadian Dollar finally weakening against a resurgent U.S. Dollar. It looks like a medium or even long-term bullish reversal is finally in place, but movement is likely to be relatively slow and choppy. Bulls will be looking for a price to get established above 1.3164 as a confirmation of this potential reversal.
There is nothing of high importance due today regarding the CAD. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 1:45pm London time.
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Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.