USD/CAD Signal Update
Yesterday’s signals were not triggered as although the price did break below the supportive trend line, there was no breakdown below the bearish candles that were testing that line.
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.
Long Trade 1
No long trades today.
Short Trade 1
Short entry after bearish price action on the H1 time frame following a bearish failed test of the broken trend line currently sitting at about 1.3412 from below.
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
There was a lot of drama involving the U.S. Dollar and several other currencies in the Forex market yesterday but this pair did not move very much despite the weakness of the U.S. Dollar. This suggests that the Canadian Dollar is also weak.
As I anticipated, the supportive trend line broke down, and although it was retested with a failure from below, the price just didn’t break down from there. Therefore, it is still a valid set-up, so watch out for a decisive rejection of that trend line followed by a move down at which to enter short.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of ADP Non-Farm Employment Change data at 12:15pm London time followed by Crude Oil Inventories at 2:30pm and the FOMC Statement and Federal Funds Rate at 6pm.