USD/CAD Signal Update
Yesterday’s signals expired without being triggered as the bullish price action at 1.4584 occurred after New York closed.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm New York time today only.
Long Trade 1
* Go long following a bullish price reversal upon the next entry into the zone between 1.4582 and 1.4550.
* Put the stop loss 1 pip below the local swing low.
* 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
I wrote yesterday that there was still a very strong upwards trend in this pair so the chances are that it is was a question of how far the pullback will go before we get another upwards swing. The answer was 1.4450 which provided the low before the price began to swing upwards strongly, as usual making its big move of the day during the New York session.
The pair has now made another 12 year high and there is no obvious resistance in place until we get quite near to the key 1.5000 level at which there is bound to be some significant profit-taking.
The long trade is the trade to look for but we are a long way from any flipped levels. Instead it looks likely that the zone at which the price was held below recent resistance beginning at 1.4582 is going to be obvious place to look for a trade following a pullback.
Regarding the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time, followed later by the Bank of Canada’s Monthly Policy Report, Rate Statement and Overnight Rate. Concerning the USD, there will be releases of Building Permits and CPI data at 1:30pm, followed later by Crude Oil Inventories at 3:30pm.