USD/CAD Signal Update
Last Thursday’s signals were not triggered as there was no bullish price action at the given support levels.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade 1
* Long entry after bullish price action on the H1 time frame following the next entry into the zone between 1.2928 and 1.2918.
* 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 Trade 1
* Short entry after bearish price action on the H1 time frame following the next touch of 1.3000.
* 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
We had a break below 1.3000 which I saw as a bearish sign. The price is now suggesting that the long-term downwards trend has been resumed, with the CAD picking up on the recovery in the price of Crude Oil. The price is now below its levels from both 3 months and 6 months ago.
There has been quite a firm short-term downwards move, but there are signs of the pace slowing down, so we might have a meaningful bullish pullback off a double bottom that could form at the lows around 1.2925.
Alternatively, a faster pull back to the key level at 1.3000 might produce another bearish drive downwards.
There is nothing of high importance due today concerning either the CAD or the USD.