USD/CAD Signal Update
Yesterday’s signals might have given a short trade as there was finally a failure at the trend line followed by a series of inside bars which arguably could have given an entry.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trades
No long trades today.
Short Trade 1
Short entry after the next touch of 1.3400 from below.
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
The first thing to note about this pair is that the CAD has been almost as weak as the USD. While other currencies have been racing ahead against the USD, the CAD has been slow to catch up, but this has finally started to happen as the price got some bearish momentum after finally testing the broken trend line from the underside.
We have a classic although messy “Quasimodo” pattern, with the round number at 1.3400 acting as the initial and then final sell-off, so I feel comfortable drawing a new resistance level there.
There is no obvious support until 1.3216 but it looks like the CAD is really going to have to begin to weaken for the price to be able to get there.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Unemployment Claims data at 12:30pm London time followed by ISM Non-Manufacturing PMI at 2pm.