USD/CAD Forex Signal

Yesterday’s signals were not triggered, as none of the key levels were reached during the specified session.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm New York time today.

Short Trades

• Short entry after the next bearish price action rejection following the next touch of 1.3264 or 1.3327.

• 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 ride.

Long Trade

• Long entry after the next bullish price action rejection following the next touch of 1.3183.

• 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 ride.

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 picture now looked uncertain with wide swings but no real direction, with the price contained within a medium-term consolidating triangle as it is also in a few other important currency pairs. I was looking for a strong break below 1.3182, but that area held, and the price went the other way to eventually break bullishly out of the triangle. The outlook is more bullish with the USD advancing everywhere, and if the price can convincingly break above 1.3264 the picture will become much more bullish, so I would take a bullish bias at that point if it happens.

There is nothing important due today concerning the  CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.