USD/CAD Forex Signal

Last Thursday’s signals were not triggered as there was no bearish price action at 1.3448.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be taken between 8am London time and 5pm New York time today.

Long Trade

• Long entry after the next bullish price action rejection following the next touch of 1.3376.

• 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 Trade

• Short entry after the next bearish price action rejection following the next touch of 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 last Thursday that the price chart showed there seemed to be really determined selling every time the price reached or got close to the big round number at 1.3500 – there may well be an institution holding a large option which needs to defend that level from the bulls.

This was an apt note as the price again tried to break above 1.3500 and failed again.

I have zoomed out in the price chart below to show that the price has been consolidating within this range from about 1.3376 to 1.3520 for almost one month now. This makes a breakout more likely to be explosive when it finally comes.

I am ready to get bullish once the price starts closing above 1.3529 or even 1.3500 but until then I think it is wide to stand aside unless you want to try fading the extremes of the range.There is nothing important due today concerning either the CAD or the USD. It is a public holiday in Canada today.