USD/CAD Signal Update
Last Thursday’s signals were not triggered as there was no bearish price action at 1.3123.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am until 5pm New York time today.
Long Trade 1
Go long after bullish price action on the H1 time frame immediately following the next touch of 1.2800.
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 very convincing bearish price action on the H1 time frame following the next touch of 1.3005.
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.
Short Trade 2
Go short after very convincing bearish price action on the H1 time frame following the next touch of 1.3200.
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 price has broken down below 1.3005 but is clustering just below the level, which suggests that the next movement is going to be a break up back above 1.3005. Therefore although the level could be used as resistance for a short trade, that should only be done extremely carefully. The price of crude oil has been reluctant to exceed $40 per barrel and this is making it hard for the CAD to rise further and hence for this pair to continue its long-term downwards trend. Additionally, we are in an area that was previously a base and as such may be hard for the price now to cut through. For all these reasons, a pullback to 1.3124 looks much more attractive as a potential set-up for a short trade.
Regarding the USD, there will be an announcement by the Federal Reserve at some time today concerning discount rates. There is nothing due concerning the CAD.