USD/CAD Signal Update
Yesterday’s signals may have produced a losing long trade after the bullish piercing candle formed at 1.2971.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be made until 5pm New York time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2800.
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.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2971.
Put 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 price reaches 20 pips in profit and leave the remainder of the position to ride.
Short Trade 2
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3064.
Put 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 price reaches 20 pips in profit and leave the remainder of the position to ride.
USD/CAD Analysis
I thought yesterday that there was a good chance that 1.2971 would hold and that we were due a period of consolidation, but the USD has weakened everywhere and this pair is no exception. The poor USD economic news yesterday helped push this state of affairs along.
We are now well below 1.2971 which will probably have flipped to become resistance, we are also at the time of writing trading below the swing low at 1.2900 so I cannot see that as a key level any longer. I look for support now at 1.2800 and the price action is suggesting a continued fall down to that level.
There are no high-impact releases due today concerning the CAD. Regarding the USD, there will be releases of CPI and Unemployment Claims data at 1:30pm London time, followed by the Philly Fed Manufacturing Index at 3pm.