USD/CAD Signal Update
Yesterday’s signals produced a profitable short trade following the bearish pin candle on the hourly chart which rejected the resistance level at 1.3241. This trade could still be open and in profit. A logical area to look to take at least partial profits would be the supportive area below at around 1.3138.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Make sure trades are protected by 6:30pm at the latest.
Long Trades
Long entry after bullish price action on the H1 time frame following the next touch of 1.3138 or 1.3100.
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 1.3241.
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 the resistance level at 1.3241 is very key. This has again been proven by the way it held yesterday and the price has been selling off ever since. A break above that level will be a crucial bullish sign as it really signifies the top of a range that has been holding in this pair for a few months now.
If the releases tonight weaken the USD we can expect this pair to fall further, probable through both of the support levels identified above. In the meantime, before the FOMC releases, the levels are very likely to hold so could be good for a few quick pips.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by all the FOMC releases at 7pm and the usual press conference.