USD/CAD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Long Trade 1
* Long entry following a bullish price reversal upon the next touch of 1.3750.
* 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 following a bearish price reversal upon the next touch of 1.4000.
* Place 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
Over the long term this has been a great bullish trend. After reaching a new multi-year high at 1.4000 last month however, progress has stalled, and we are stuck in a ranging / consolidating period. There is minor support at around 1.3820 which has held three times over the last week or so. My gut feeling is that we are going to dip below there and reach either 1.3750 or a price very close to it before we are going to get another significant challenge of 1.4000. The resistance so far seems to be kicking in a little below that price, say at about 1.3975. Alternatively, we may get another test of 1.4000 first, and if this fails quickly I think it will predict a fairly sharp downwards move, at least to 1.3750.
There is nothing due today concerning either the CAD or the USD.