USD/CAD Signal Update
Last Thursday’s signals were not triggered as the bearish price action took place a little way above the key resistance level identified at 1.3500.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trades
Go long after the next bullish price action rejection following a first touch of 1.3500 or 1.3443.
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
No short trades today.
USD/CAD Analysis
The USD has been bullish, which has lifted this pair, but it is noticeable that it has risen by less than many other USD pairs. This is because the Canadian economy is, apart from oil, very correlated with the U.S. economy.
Today looks as if we are getting a pull back from the USD rally, and the price is falling with some momentum. It would not surprise me if 1.3500 fails to hold, but the support levels identified below that number look as if they are likely to be stronger.
It is probable that there will be better opportunities elsewhere in the market today, in other currency pairs.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time.