USD/CAD Signal Update
Yesterday’s signals were not triggered as the price never quite reached 1.3046; however that area was wonderfully supportive and was within just a few pips of the low prior to a strong bullish move.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 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 the broken bearish trend line currently sitting at around 1.3140 as shown in the chart below.
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.
Long Trade 2
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3046.
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 1.3305.
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 wrote yesterday that the price was sitting on a very key and this level proved itself yet again as there was strong buying at 1.3050 which sent the price rocketing up by about 120 pips. The USD now looks much more bullish but it is less predictable against the CAD due to the big fluctuations in the price of oil, which are tending to occur mostly upwards, which strengthens the CAD and makes long positions quite hard to hold on to profitably for any length of time.
If the trend line at 1.3140 does not hold then we are quite likely to chop around between there and 1.3100 for the rest of the day.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time.