USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action when the price reached 1.3912.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time 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 1.3675.
* 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 on the H1 time frame upon the next touch of 1.3620.
* 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 3
* Long entry following a bullish price reversal on the H1 time frame upon the next touch of 1.3550.
* 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 1.3912.
* 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
In two weeks the price of this pair has fallen by about 1000 pips. This is even stronger than its previous spectacular upwards move. It just goes to show that in Forex, it is quite common for strong, fast moves in one direction to be followed by even faster moves back towards the original price.
We still have not really had any kind of meaningful rally since the price began to fall. Firstly the CAD is recovering and secondly the USD really went strongly out of favour yesterday with poor US economic news, although that could change tomorrow if there are very strong NFP numbers.
I would be very cautious in taking a long trade, I really prefer to see a double bottom first or at least something that looks like a major higher low first.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.