USDCAD: Bearish break below 1.3251
Yesterday’s signals were not triggered, as none of the key levels were reached during the day’s session.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade Idea
Long entry after the next bullish price action rejection following the next touch of 1.3186.
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 would be happy to find a long trade entry from a solid bullish bounce following another retracement to the support level at 1.3251 – I would take a bullish bias if this set up later.
While I was correct to imply that 1.3251 would be the day’s pivotal point, as it was, we have had an unexpectedly bearish development as the price finally breaks below the psychologically important 1.3250 level confluent with this horizontal resistance.
The outlook is now more bearish. I would be prepared to take a bearish bias at a short trade entry opportunity following another bearish rejection of 1.3251, if it sets up later today.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.