USD/CAD Signal Update
Yesterday’s signals were not triggered as although the price did reach 1.2400, there was no bullish price action there.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered today between 8am and 5pm New York time.
Short Trade 1
Short entry after bearish price action on the H4 time frame immediately following the first test of the area between 1.2370 and 1.2400.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.
USD/CAD Analysis
For a while now I have been forecasting that a sharp bearish drop below the lower trend line of the well-established channel was quite likely to be on the cards. This finally happened yesterday and the price fell sharply, with the Canadian dollar rising to 3-month highs against the USD.
This presents a nice potential shorting opportunity to watch out for as if the price now pulls back to the broken trend line, it could reverse again easily and fall all the way to 1.2100 at least. Note there are two trend lines that could provide this opportunity. Ideally, there will be a rejection of both of them at the same time.
As for going long, I do not see any good opportunities for that until we get below 1.2100, at this point.
There are high-impact events scheduled today concerning the USD but not the CAD. At 1:30pm London time there will be a release of Building Permits and Unemployment Claims data, followed later at 3pm by the Philly Fed Manufacturing Index.