USD/CAD Signal Update
Yesterday’s signals were not triggered.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Protect any open trades by 6:30pm.
Long Trades
Long entry after bullish price action on the H1 time frame following the next touch of 1.2836 or 1.2752.
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 Trades
Short entry after bearish price action on the H1 time frame following the next touch of 1.3000 or 1.2880.
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
This pair continues to look increasingly bullish, although it is in a long-term downwards trend. We saw some really strong buying at the bottoms a few days ago. Now the price has managed to push up above a resistance level at 1.2836 and so far it has acted as support. This is another bullish sign and it is happening even as the USD consolidates ahead of the FOMC releases, although it is true the USD is noticeably stronger over recent hours. It is more to do with a weakening of the CAD and the price of Crude Oil.
It is likely that nothing much more will happen until the FOMC releases later which usually cause a great deal of volatility in this pair. If the releases are bullish for the USD, this pair can be expected to rise fairly strongly and possibly even reach 1.3000 quite soon.
Concerning the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time. Regarding the USD, there will be a release of PPI data also at 1:30pm, followed later at 3:30pm by Crude Oil Inventories. At 7pm there will be the release of the Federal Funds Rate, FOMC Statement and FOMC Economic Projections, followed by the usual press conference.