USD/CAD Signal Update
Yesterday’s signals were not triggered as the level at 1.3133 was already broken by the time that New York opened.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken from 8am New York time until 5pm London time today.
Protect any open trades half an hour before the FOMC release.
Long Trade 1
Go long after bullish price action on the H1 time frame immediately following the next touch of 1.3005.
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 bearish price action on the H1 time frame following the next touch of the bearish trend line currently sitting at around 1.3212.
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 1
Go short after bearish price action on the H1 time frame following the next touch of the bearish trend line currently sitting at around 1.3270.
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
We are quite far from any key horizontal levels and that is almost certain to remain the case until the FOMC Meeting Minutes release due later after the London close. However there is a long-term bearish trend line not so far away which is becoming increasingly confluent with the round number at 1.3200 and this might become interesting.
The most likely and probably safest scenario would be to wait for the FOMC release which could push the price to a key level or trend line, and see how it reacts on a short time frame before entering.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.