USD/CAD Signal Update
Yesterday’s signals produced a long trade off the doji rejecting the key support level at 1.3496, and the trade has not really gone anywhere.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Long Trade 1
* Long entry following a bullish price reversal on the H1 time frame upon the next entry into the zone between 1.3435 and 1.3416.
* 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 an entry into the zone between 1.3620 and 1.3650.
* 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
The 1.3500 area has been supportive now for a few days and it continues to hold the price. However with the rise in the USD this should have been more convincing. The reason why this pair just cannot go up is mostly due to the continuing resilience of the price of crude oil which is heavily correlated with the Canadian dollar.
Although the support at 1.3496 is holding I do not look to this level any more but instead I see the key prices at 1.3620 above and 1.3435 below.
I feel it is very hard to predict what is going to happen next. Before going long it would probably be a good idea to wait for a breakout up past a key resistance level and that is just not happening yet.
Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Regarding the CAD, there will be a release of GDP data at 1:30pm.