USDCAD: 1.3345 looks pivotal
Yesterday’s signals were not triggered, as none of the key levels were reached yesterday.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time today.
Go long after the next bullish price action rejection following the next touch of 1.3365 or 1.3345.
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 ride.
Go short after the next bearish price action rejection following the next touch of 1.3463 or 1.3479 or 1.3493.
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.
I wrote yesterday that the price was just consolidating bullishly, but that we could still get a good bullish breakout from the consolidation above 1.3425. We did, but the price failed quickly. It was at least useful as a level acting as the day’s pivotal point.
There is no long-term trend in this pair, so we have to look to the key support levels now, which have still not been breached. I see 1.3345 or maybe just the half number at 1.3350 as likely to produce a bullish bounce if reached later today, so a quick scalp off such a bounce for a conservative profit target would probably be the best opportunity that might arise.
I have no directional bias on this currency pair today, it looks hard to trade, and tension in the Gulf can affect the price of Crude Oil dramatically which could also impact the Canadian Dollar as Canada is a major oil producer.Regarding the CAD, there will be a release of CPI (inflation) data at 1:30pm London time. Concerning the USD, there will be releases of the FOMC Economic Projections, FOMC Statement, and Federal Funds Rate at 7pm, followed half an hour later by the usual press conference.