USD/CAD Signal Update
Last Thursday’s signals may have produced a very profitable short trade following the rejection of the resistance level at 1.3133. It looks like it is worth taking profit from any such trade still open now.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Long Trade 1
Go long after bullish price action on the H1 time frame following the next touch of 1.2880.
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
Go short after bearish price action on the H1 time frame following the next touch of 1.300 or 1.3080.
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
I wrote last Thursday there would be better opportunities elsewhere and I was wrong: the short trade from 1.3133, which I did highlight, actually was triggered (depending upon your reading of the price action when the price reached that level) and the price eventually fell by more than 200 pips from there! However this really was not very foreseeable, but it does illustrate that although big news events like the NFP often produce volatile whipsaws that tend to stop you out whether you are in a long or short position, they can sometimes produce a dramatic boost to put your trade in an extremely strong position.
The interesting thing about this pair now is that there has been a fairly strong recovery by the USD against the CAD following the sharp move against the USD, which is not apparent in most other currencies, so 1.3000 is a realistic prospect to be hit today. If the price of oil hits $50 when this pair hits 1.3000, there could be a good strong turn, giving an excellent shorting opportunity.
There is nothing due today concerning the CAD. Regarding the USD, the Chair of the Federal Reserve will be speaking at 5:30pm London time.