USD/CAD Signal Update
Yesterday’s signals were not triggered.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am until 5pm New York time today.
Long Trades
Long entry after bullish price action on the H1 time frame following the next touch of 1.2900 (if this was not reached during the Asian or London sessions) or 1.2750.
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 Trades
Short entry after bearish price action on the H1 time frame following the next touch of 1.3005 or 1.3123.
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
I wrote yesterday that the rejection of the resistance at 1.3005 might have been a decisive change, and it seems even more likely to be true now as we have seen the USD strong almost everywhere else except against the CAD. This partly due to an increase in the price of Crude Oil with which the CAD is highly positively correlated.
The new bearishness will be put to the test if and when the price reached the next potential support at 1.2900. A decisive break below there could see the price test 1.2750.
There are no high-impact events due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.