USD/CAD Signal Update
Yesterday’s signals expired without being triggered as there was no bearish price action when the price reached 1.3064 or 1.3128.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken 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 1.3064.
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.
Take off 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 1.3200.
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 1.3300.
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
Yesterday’s announcement by the Bank of Canada has changed the sentiment on its currency in a more bearish direction, as they cut their forecast for Canadian economic growth over the next couple of years. This was something very concrete and the pair was already looking bullish, so the news did create a bullish follow through.
It now seems likely that the former resistance at 1.3064 will have flipped to support and a return to this level is likely to be a really great place to get long.
We reached a little way above the next resistance level of 1.3128 before falling from there, so I will not be using that level in my forecast now. Instead I look to the round number of 1.3200 for probable support.
I see long trades in this pair as the most high-probability intraday trade in the Forex market today, especially if the bullish picture is supported by the news releases due for both currencies at the New York open later.
Regarding the CAD, there will be a release of Core Retail Sales data at 1:30pm London time. Concerning the USD, there will be a release of Unemployment Claims data also at 1:30pm.