USDCAD: Still bearish below 1.3153
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 may only be entered between 8am London time and 5pm New York time today.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3054.
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
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 the U.S. Dollar had recovered quite firmly, but the bearish trend here was still arguably intact even as risk sentiment improved. This is because the Canadian Dollar, being linked to Crude Oil, tends to also strengthen as risk-on feelings boost the price of Crude Oil. As such, the CAD still seems to be the strongest currency against the USD.
We have seen a retracement upwards, but it is notable that the bulls have not been able to push the price up by enough to even reach the nearest resistance level, let alone get past it. The short-term price action looks bearish, so although the London open can often produce an unpredictable change in direction, I am inclined to take a bearish bias here until the support level of 1.3054 is reached, provided that the price remains below 1.3153.
There is nothing of high importance due today regarding either the CAD or the USD.