USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action when the price entered the zone from 1.4582 to 1.4550.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm New York time today.
Long Trade 1
* Long entry following a bullish price reversal upon the next touch of 1.4400.
* 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.
Long Trade 2
* Long entry following a bullish price reversal upon the next touch of 1.4314.
* 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.
Short Trade 1
* Short entry after bearish price action on the H1 time frame following a touch of 1.0179.
* Put the stop loss 1 pip above the local swing high.
* 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
The Bank of Canada yesterday surprised the market by not cutting its interest rate from 0.50% to 0.25%, and being slightly less dovish than anticipated in its monthly policy statement. This has been enough to produce what looks like is going to be a more serious pullback in the upwards trend than anything we have had for a while.
However it is too early to speak of a real trend change so if we get down to the round number at 1.4400 or close to it, this could be a good point at which to get long on any bullish bounce from there.
There is nothing due today concerning the CAD. Regarding the USD, there will be releases of Unemployment Claims data and the Philly Fed Manufacturing Index at 1:30pm London time.