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 New York time today.
Long Trade 1
* Long entry following a bullish price reversal upon the next touch of 1.4050.
* 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 1
* Long entry following a bullish price reversal upon the next entry into the zone between 1.4000 and 1.3976.
* 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 very strong bearish price reversal upon the next entry into the zone between 1.4165 and 1.4189.
* 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
We continue to make new 11 year highs and even the pull back by the USD late yesterday wasn’t able to make much of a dent on this pair. The price of crude oil also continues to make new historic multi-year lows which is dragging down the CAD.
It seems that 1.4050 is also now established as a good support level.
Be very careful before going short but there are monthly highs not far above that should act as at least short-term resistance.
Concerning the CAD, the Governor of the Bank of Canada will be speaking at 1:25pm London time. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.