USD/CAD Forex Signal

Yesterday’s signals were not triggered, as there was no bearish price action at 1.3468.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm New York time today.

Long Trade

• Long entry after the next bullish price action rejection following the next touch of 1.3463.
• 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 run.

Short Trades

• Go short after the next bearish price action rejection following the next touch of 1.3468 or 1.3529.
• 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 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 the only thing that could usefully be said about this currency pair now is that we had very evenly matched support and resistance levels, with the price right in the middle of both of them. You will rarely see a currency pair with less direction than this. I was standing aside from trading this pair for the time being, but if you are determined to trade here, it might be wise to look for quick scalps from reversals of either of the nearby support and resistance levels at 1.3429 and 1.3468 respectively. A breakout from this inner range could indicate a continuation to the further level at the extreme of the price chart.

In a way, this was a terrible call, as we are finally getting new long-term high prices, although we really need to hold up past 1.3529 for a true breakout. The picture is looking much more bullish and the odds are with the bulls now. However, the Bank of Canada is giving its monthly guidance later today, which could push the price anywhere and easily end this bullish breakout before it has really begun. Alternatively, it could push the price higher and create an environment for an advance well beyond 1.3529.

Overall, I would take a bullish bias if the price is above 1.3529 at 5pm London time today, 2 hours after the Bank of Canada’s release. We may be seeing the start of a bullish trend worth paying attention to.

There is nothing of high importance due today concerning the USD. Regarding the CAD, the Bank of Canada will release its Rate Statement and Overnight Rate at 3pm London time.