USDCAD: More bullish above 1.3286
Yesterday’s signals were not triggered, as there was no bearish price action when the descending trend line was hit at around 1.3280.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm New York time today.
Long Trade Ideas
Long entry after the next bullish price action rejection following the next touch of 1.3286, the descending trend line currently sitting at about 1.3270, or 1.3251.
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 Ideas
Short entry after the next bearish price action rejection following the next touch of 1.3345 or 1.3365.
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 I thought the price would slowly struggle up from this supportive area based on 1.3185 but will take a while to break above the bearish trend line. I thought the move would be so slow that I was not ready to take a bullish bias. I was correct about the direction, but wrong about timing, as the price has moved up relatively strongly and broken well above the bearish trend line, printing a few new higher support levels.
The longer-term chart is showing we have a definite but weak bullish trend. This suggests that the best trades here will be bounces at support levels in the long direction. The broken trend line and 1.3251 look especially likely to be supportive so I would take a bullish bias if we get a firm bullish bounce in either of those places today.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be releases of Core Retail Sales, Retail Sales, and the Philly Fed Manufacturing Index at 1:30pm London time.