USD/CAD Signal Update
Yesterday’s signals were not triggered as the bullish engulfing candle rejecting the support level identified at 1.3082 only formed and broke after London closed.
Today’s USD/CAD Signals
Risk 0.50% 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 1.3253 or 1.3189.
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 1.3316 or 1.3356.
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 price was fairly quiet until the FOMC release, which produced the anticipated rate hike, but more importantly, produced a forecast of higher rates than had been expected for 2017. This sent the USD rising everywhere, and even though the CAD has been one of the strongest currencies, the move upwards in this pair was particularly strong.
Three resistance levels were cleanly broken and look to have flipped to become likely support. Note however that we remain within an area where the price has been recently, so it will be surprising if the price does not become more sticky soon, as the market settles down.
Regarding the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time. Concerning the USD, there will be releases of CPI, Unemployment Claims and Philly Fed Manufacturing Index data at the same time.