USD/CAD Signal Update
Yesterday’s signals were not triggered as the price action at 1.3084 was untradeable.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am London time and 5pm New York time today.
Long Trade 1
Go long after bullish price action on the H1 time frame following the next touch of 1.2919.
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
Go short after bearish price action on the H1 time frame following the next touch of 1.3084 or 1.3134.
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 it looked as if we were headed up to the next level at 1.3084. This is exactly what happened before the pair fell sharply.
I still see 1.3084 as good resistance but there are no obvious key support levels nearby. However I would look to a zone between about 1.3025 and 1.3000 as a likely area for at least a short-term bullish reversal if the pair trades down to that zone over the next few hours.
At the moment the pair has no long-term trend and is really just bouncing around between support and resistance levels. The big test of the long-term trend is what happens if and when we next reach 1.3134.
Concerning the CAD, there is nothing due. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.