USDCAD: Weakly bullish from 1.3236
Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.3236.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm New York time today only.
Long Trade Ideas
Long entry after the next bullish price action rejection following the next touch of 1.3236 or 1.3177.
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
Short entry after the next bearish price action rejection following the next touch of 1.3308 or 1.3345.
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 yesterday that there was 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. This was a great call as the level held precisely to the pip and has produced a small upwards move.
The price action is very weakly bullish. The problem with technical analysis today is that there are major news events due for both currencies which can push the price anywhere.
The longer-term price charts are showing a potentially bearish price pattern, so despite the weakly bullish picture, nothing would surprise me, and everything is possible here with such major news items due shortly. Until those releases, I think 1.3236 will be likely to hold up.
Concerning the CAD, there will be a release of CPI (inflation) data at 1:30pm London time. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm, followed by the FOMC Statement, Federal Funds Rate, and Projections at 7pm, followed by a press conference half an hour later.