USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 1.4219.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
* Go long following a bullish price reversal on the H1 time frame upon the next touch of 1.4050.
* 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.
Long Trade 2
* Go long following a bullish price reversal on the H1 time frame upon the next touch of 1.4000.
* 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.
Short Trade 1
* Go short after bearish price action on the H1 time frame following a touch of 1.4314.
* Put the stop loss 1 pip above the local swing high.
* 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 a fall from the 1.4314 level could make a good short trade, but I didn’t structure the signal quite right enough to take advantage of it. However the resistance level worked perfectly, with this pair making some big swings and here we had another sharp fall all the way down to the anticipated support at 1.4050. We have had something of a bullish bounce here and it may hold but it does take a lot of courage to go long this pair on these first bounces at the moment. If we can carve out a double bottom at around 1.4050 it will look like a much better long prospect.
Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm. There is nothing due regarding the CAD.