USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no quick bearish price action when the price entered the zone between 1.3166 and 1.3209.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today.
Long Trade 1
* Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.3138.
* 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
* Go short after bearish price action on the H1 time frame following the next touch of 1.3400.
* 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 pair has managed to move up quite strongly, benefiting from risk-off sentiment which has pushed up the USD and pulled down crude oil, with which the Canadian Dollar is highly positive correlated.
The price has managed to break free of the resistant zone that was centred on 1.3200, and there is now no really key resistance level until 1.3400. The price should continue to rise until there is a chance in sentiment on the USD which could happen later today if the economic data release is significantly poorer than expected.
There is a key inflection point below at 1.3138 which could be supportive if and when the price gets back down there.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders and Unemployment Claims data at 12:30pm London time.