USD/CAD Signal Update
Last Monday’s signals narrowly missed being triggered as the forecast support was just 7 pips below the low of the day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered today between 8am and 5pm New York time.
Long Trade 1
Go long after bullish price action on the H1 time frame immediately following the first test of the bullish trend line currently sitting at around 1.2400.
Put 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry after bearish price action on the H4 time frame immediately following the first test of 1.2644.
Put 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
USD/CAD Analysis
This pair has gone from being one of the strongest places to buy the USD to a place where it ranges endlessly. After yesterday’s fall we are again approaching the crucial 1.2400 level confluent with the long-term bullish channel trend line. This may again provide support so would be a logical place to look for a long. However a continued pull back in the USD could see a break below that which might then lead to a very sharp fall through a hidden gap all the way down to 1.2100 or thereabouts, so there might be a lot of potential on the short side.
There are high-impact events scheduled today concerning the CAD but not the USD. At 1:30pm London time there will be a release of Canadian Manufacturing Sales Data, followed later at 3pm by the Bank of Canada’s Monetary Policy Report and Rate Statement.