USD/CAD Signal Update
Last Thursday’s signals were not triggered as none of the key levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
Long entry after bullish price action on the H1 time frame following the next touch of 1.3060.
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
Short entry after bearish price action on the H1 time frame following the next touch of 1.3100, 1.3121 or 1.3163.
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 have really zoomed out in the hourly chart below to try to give a clear picture of how much more bearish the picture has turned over the past few days. The long-term supportive trend line was breached and “flipped” to act as resistance upon being tested for the first time at about 1.3179.
The former support at 1.3100 has just broken down and it may be possible to get short from there over the next few hours. It is a little early, but the action there looks very bearish. There are several new resistance levels within range above also.
Below, it looks as if there will be support from the former Quasimodo at 1.3060, and of course the very large round number at 1.3000 is bound to give something too.
Regarding the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time. Concerning the USD, there will be a release of CPI data simultaneously.