USD/CAD Signal Update
Yesterday’s signals produced profitable trades in both directions! There was initially a bearish reversal off forecast resistance at 1.3064 followed only two hours later by a bullish reversal off forecast support at 1.2971.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be made until 5pm New York time today.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2971.
Place 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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2900.
Place 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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3064.
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 price reaches 20 pips in profit and leave the remainder of the position to run.
Short Trade 2
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3128.
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 price reaches 20 pips in profit and leave the remainder of the position to run.
USD/CAD Analysis
Yesterday’s forecast was just about perfect, but what next? We are now heading down again towards 1.2971 and it is an open question what will happen if and when we get there. I suspect there will be a period of consolidation over the next few days in this pair, which should make any of the 4 key support and resistance levels mentioned above and shown in the hourly chart below good points at which to seek reversal trades.
There are no high-impact releases due today concerning the CAD. Regarding the USD, there will be releases of Retail Sales and PPI data at 1:30pm London time.