USD/CAD Forex Signal

USDCAD remains trapped in its long-term price range

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

• Go long 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 noted yesterday 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 was ready to get bullish once the price starts closing above 1.3529 or even 1.3500 but until then I thought it wise to stand aside unless you want to try fading the extremes of the range.

I take the same approach again today.There is nothing important due today concerning either the CAD or the USD.