USD/CAD Signal Update
Last Wednesday’s signals were not triggered as the price closed on the hourly time frame above 1.2050 before turning bearish.
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 H1 time frame immediately following the next test of 1.2188.
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.
Short Trade 2
Short entry after bearish price action on the H1 time frame immediately following the next test of 1.2210.
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.
Long Trade 1
Long entry after bullish price action on the H4 time frame immediately following the first test of 1.2150.
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.
Long Trade 2
Long entry after bullish price action on the H4 time frame immediately following the first test of 1.2112.
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.
Long Trade 3
Long entry after bullish price action on the H4 time frame immediately following the first test of 1.2056.
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
USD/CAD Analysis
At the time of my last forecast this pair was falling hard as the CAD was the strongest currency over the previous month. However since then this pair has pulled back considerably. Over the medium-term, it still looks bearish, but there seems to be some upwards momentum in current price action.
This suggests that we will probably chop around for a few days especially as the big news on both sides of this pair is due only at the end of the week. The support and resistance levels will probably hold today in the absence of any news.
We are now in a more congested area with several levels that may hold and give a few trades with modest profits.
There are no high-impact events scheduled today concerning either the USD or the CAD.