USDCAD: Bullish above 1.3200
Last Thursday’s signals unfortunately were not triggered as the price action at the support level of 1.3120 was insufficiently strong, but the level acted as great support.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time today only.
Long Trade Ideas
Go long after the next bullish price action rejection following the next touch of 1.3153, 1.3120, or 1.3104.
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 Trade Ideas
Go short after the next bearish price action rejection following the next touch of 1.3250 or 1.3277.
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 it still made sense to be much more bullish if the price could break out above 1.3164 and hold up there. I was ready to take a bullish bias later if we got two consecutive hourly closes above 1.3164. This did not happen until Friday, but as the price has now broken up above that area and is currently continuing to rise, we can confidently say that the picture is more bullish.
If the price can break and hold above the round number and previous inflection point at 1.3200 today, I would take a bullish bias, as we could then see a continuing rise to 1.3250. That level is likely to be strong resistance, so there might be a short opportunity there later too, but it is probably better to treat that as a fast scalp for the time being.
There is nothing of high importance due today regarding either the CAD or the USD.