USD/CAD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be made between 8am London time and 5pm New York time today.
Long Trade 1
Go long after bullish price action on the H1 time frame immediately following the next test of 1.2545.
Place 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.
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 1
Go short after bearish price action on the H1 time frame immediately following the next test of 1.2739.
Place 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.
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.
USD/CAD Analysis
This pair continued its sharp rise yesterday, pausing at 1.2700 and falling back late but roaring back in early trade this morning. At the time of writing it is trading only about 20 pips short of the anticipated resistance at 1.2739. The buying looks somewhat over-extended, so the price should be quite likely to fall back from that level. However, the buying is very strong, so be careful in taking a short – it will need to be a solid reversal, and it would be wise to be conservative in protecting any profits.
Unfortunately there are no obvious buying levels close by. Dropping down a timeframe though, we can see that 1.2670 might be supportive.
There are high-impact events scheduled today concerning both the CAD and the USD. Concerning the CAD, there will be a release of GDP data at 1:30pm London time. Regarding the USD, later at 3pm there will be U.S. CB Consumer Confidence data.