USDCAD: Bullish breakout beyond 1.3200
Yesterday’s signals produced a profitable short trade entry for the minimum profit, then a long trade entry from the bullish pin candlestick on the hourly chart which rejected the support level identified at 1.3120.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade Ideas
Long entry after the next bullish price action rejection following the next touch of 1.3186, 1.3151, 1.3120, or 1.3104.
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 Trade Idea
Short entry after the next bearish price action rejection following the next touch of 1.3250, 1.3277, 1.3302.
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 the level confluent with 1.3150 could be very attractive as a short trade entry opportunity if we got a bullish retracement to it followed by a bearish failure: I was ready to take a bearish bias later if this scenario set up. This did give a trade which gave about 20 pips of profit, but then there was a long trade which gave much more, so my bias was not a good call. However, I did point out yesterday that there were major releases due for both currencies in this Forex pair, so movement could be erratic.
The picture is now much more bullish as the price seems to have broken solidly above the 1.3200 area, with the U.S. Dollar significantly stronger against almost every other major currency. For this reason, I would take a long bias here if there is a solid bullish bounce at any support level following a bearish retracement.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time