By: DailyForex.com
USD/CAD Signal Update
Yesterday’s signals were not triggered as there was insufficiently bearish price action at 1.3141.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trades
Go long after the next bullish price action rejection following a first touch of 1.3082 or 1.3052.
Put 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
Go short after the next bearish price action rejection following a first touch of 1.3152 or 1.3189.
Put 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 picture continues to be bearish, with the Canadian Dollar really the only currency that is stronger than the U.S. Dollar in any kind of meaningful long-term way.
However, recent hours have seen a consolidation of the price, which has broken up in a passive way past a short-term bearish trend line. This could be an early sign of a pull back.
I prefer to look to key levels for reversals.
A change in volatility should be spotted before considering going long as it seems to be a firm trend.
The closer we get to 1.3000, the more likelihood of a bullish reversal.
There is nothing due today regarding either the USD or the CAD.