USDCAD: Bullish breakout from flag pattern continues
Last Thursday’s signals were not triggered, as there was no bullish price action when 1.3170 was first reached that day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered 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 1.3212 or 1.3140.
⦁ 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 1.3282.
⦁ 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 last Thursday that we had had a bullish breakout from the dominant flag pattern, and that if the price could hold above 1.3170, I would start to get comfortable taking a bullish bias. The price did not hold above that level all day, but has generally continued to rise since the breakout, creating a considerably more bullish technical picture.
Long-term charts show a long-term bullish double bottom seems to have been formed close to the big round number at 1.3000.
The price is currently sitting on support at 1.3234 so I see the level below that at 1.3212 as the first place for a long trade entry. The next support level is much lower and is very unlikely to be hit today, but it looks very strong as it is exactly confluent with the broken upper trend line from the flag pattern.
I have a bullish outlook and seek long trades on this currency pair.
There is nothing of high importance due today concerning either the USD or the CAD.