USDCAD Forex Signal
|Yesterday’s signals were not triggered, as there was insufficiently bearish price action at the resistance level of 1.3047.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time, over the next 24-hour period only.
Long Trade
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Long entry after the next bullish price action rejection following the next touch of 1.2826.
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Put the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 Trades
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Short entry after the next bearish price action rejection following the next touch of 1.3047 or 1.3141.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 I had a bullish bias above 1.3050, but the price was unable to quite reach that level, falling instead after touching the resistance at 1.3047.
This pair has become very interesting as it is making a classic bullish consolidation below key long-term resistance which suggests a building of enough pressure to eventually produce a dramatic bullish breakout. I had thought the FOMC release yesterday would probably be the catalyst for such a move, but the release has instead sent the U.S. Dollar a little lower, so it has not happened.
It seems now that as long as the bullish trend line shown in the price chart below holds, the price will remain likely to eventually make a strong bullish break above 1.3050, so I maintain a very weakly bullish bias above 1.2950 and a stronger bullish bias above 1.3050.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.
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