USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.4313.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trade 1
* Long entry following a bullish price reversal upon the next touch of 1.4313.
* Place the stop loss 1 pip below the local swing low.
* Adjust 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.
USD/CAD Analysis
This pair is very straightforward: just bullish all the way. Yet again, the pair made a new 11 year high. Yet again, the price of crude oil fell to new lows, yesterday getting below $30 which is psychologically significant. There was a global stock sell-off yesterday in which major indices reached new lows, most noticeably the S&P 500 Index got below the 1900 level. All this “risk-off” sentiment boosts the USD and Canadian fundamentals look quite weak, so it all adds up to a very bullish, buy and hold type of picture for this pair.
Technical, there is no obvious resistance before 1.4500, and the previous resistance at 1.4313 has probably now flipped to support so it could provide a good buying opportunity after a pullback.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims at 1:30pm London time.