USDCAD: Pivotal point at 1.3236
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered from 8am London time until 5pm New York time today.
Long Trade Ideas
Go long after the next bullish price action rejection following the next touch of 1.3236 or 1.3177.
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
Go short after the next bearish price action rejection following the next touch of 1.3308.
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 there was a lack of any clear trend and the picture was further complicated by the strong jump in the price of crude oil. It was hard to make any call here, but a strong reversal at the extremes such as the 1.3100 area or 1.3308 could be an interesting trade if it set up.
As it happened, the price did little yesterday, and this was one of the quieter Forex currency pairs in the market. My analysis repeated above stands, with the added twist that there is a clear pivotal point close by at 1.3236 that could be used for reversal scalps or possibly as the original of a larger trade. The problem for anything bigger than a scalp is that both currencies are likely to be quite strong, but I see more potential for a short than long trade as Crude Oil and the CAD are more likely than the U.S. Dollar to remain strong.
There is nothing of high importance due today concerning either the CAD or USD.