USD/CAD Forex Signal

USDCAD: Still bearish below 1.3300

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 before 5pm New York time today.

Long Trades

• Long entry after the next bullish price action rejection following the next touch of 1.3241 or 1.3204.

• 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

• Short entry after the next bearish price action rejection following the next touch of 1.3463.

• 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 yesterday that due to the strong bearish breakout, the odds over the day favoured still lower prices. Most of the range was indeed lower, but the price moved very little over the course of the day. However, when there is a very tight consolidation following a strong directional move, that is usually a sign of impending continuation, so I continue to take a bearish bias today. The problem for bears however is the support nearby at 1.3241 and 1.3204 and of course the big psychological level just above them at 1.3250 as well. These could halt a downwards movement but note that below 1.3200 there is a price “vacuum” which stretches all the way down to 1.3054.
There is nothing important due today concerning either the USD or the CAD.