USD/CAD Signal Update
Yesterday’s signals produced a profitable long trade following the bullish engulfing candlestick rejecting the identified support level at 1.2972 during the London session, although finally it was good only for about 45 pips of profit.
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 Trades
Go long after bullish price action on the H1 time frame following the next touch of 1.2916 or 1.2871.
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 1.2972 or 1.3133.
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
This pair initially continued its recent strong rise yesterday, but fell after being unable to sustain itself above 1.3040. A development that points to a more bearish outlook is the flipping of the former support level at 1.2972 to resistance a few hours ago. Usually I would want to wait a day or so before looking at a short following a pullback to that price, but the chart shows it has been a very strong level, so it looks good.
A firm break below the swing low at around 1.2950 would suggest a resumption of the long-term bearish trend, although the pair has been finding a lot of support below during recent weeks. It would however, logically take a more bullish outlook for the global economy to really get the price falling again long-term.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time followed by Unemployment Claims data 15 minutes later. Then at 4pm there will be a release of Crude Oil Inventories.