USD/CAD Signal Update
Yesterday’s signals expired without being triggered as the bearish price action occurred above 1.3945.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered after 5pm New York time today.
Long Trade 1
* Long entry following a bullish price reversal on the H1 time frame upon the next touch of 1.3800.
* 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.
* 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 Trade 1
* Short entry after bearish price action on the H1 time frame following a touch of 1.4129.
* 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 trade is 20 pips in profit and leave the remainder of the position to ride.
USD/CAD Analysis
I wrote yesterday that a sustained break up above 1.3950 would be significantly bullish. We have more or less had that sustained break and the chart is saying that this pair really wants to move higher. We see terrible weakness in Crude Oil and a weak CAD, however the problem with this pair is that the USD is also very weak right now and so it is hard for this pair to really get any acceleration. Nevertheless it would not be completely surprising if we did get a bullish break up above 1.4000 and I would not look to short from that resistance level. However it also wouldn’t be surprising if we continue to consolidate below 1.4000 with quite a lot of volatility.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. The Chair of the Federal Reserve will be testifying before Congress at 3pm.