USD/CAD Signal Update
Last Thursday’s signals may have produced a losing long trade following the doji on the 1.4000 level.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
* Go long following a bullish price reversal on the H1 time frame upon the next touch of 1.3912.
* 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 run.
Short Trade 1
* Go short after bearish price action on the H1 time frame following a touch of 1.4128.
* 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 trade is 20 pips in profit and leave the remainder of the position to run.
USD/CAD Analysis
The downwards trend has continued, breaking down past several levels that could normally have been expected to provide some support. However the price has been held by 1.3950 for a while so it just might be that we are finally finding a bottom, but I am not sure at all that the price won’t go lower. I would look for a long trade below there at around 1.3912, and a short off 1.4129 still looks attractive. Unless there is a really low-risk long entry, it might make sense to wait for a move up and a higher major low before going long of this pair as it still looks to be under a lot of downwards pressure.
Concerning the USD, there will be a release of ISM Manufacturing data at 3pm London time. There is nothing due regarding the CAD.