USD/CAD Signal Update
Yesterday’s signals produced a profitable long trade from the bullish engulfing candle on the H1 chart rejecting the identified support level of 1.3138. However, the trade only made the minimum 20 pips of profit before turning around and stopping out.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trades
Long entry after bullish price action on the H1 time frame following the next touch of 1.2998 or 1.2937.
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
Short entry after bearish price action on the H1 time frame following the next touch of 1.3100 or 1.3138.
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
The dovish FOMC release has had the effect of both weakening the USD and also boosting stocks and crude oil, the combination of which has caused this pair to fall quite heavily and putting an end to any possibility of a real long-term trend developing in a bullish direction.
The price may stabilise for a while but will probably fall further, at least to 1.3000 and quite possibly beyond that
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.