USD/CAD Signal Update
Yesterday’s signals produced a nicely profitable long trade as the price turned at the support level of 1.3912 given yesterday almost to the pip.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm New York time today.
Long Trade 1
* Long entry following a bullish price reversal on the H1 time frame upon the next touch of 1.3912.
* 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 1.4128.
* 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 have reached an interesting point, as the price has not just bounced healthily off a key support level identified yesterday, but a look at the chart below shows both that the action has been solidly bullish with a steady progression of bullish candles, and also that we are currently threatening to break up above a short-term bearish trend line. If we manage to stay above this line, it will be a bullish sign. A higher low followed by another upwards move will be an even more bullish sign. A break up above the next crucial resistance level would suggest we are getting back into the long-term trend. While multi-year lows in crude oil may be over for a long time, this pair is bound to see a bullish move as it has fallen so far and so fast against its long and medium term bullish trends.
There is nothing due today concerning either the CAD or the USD.