USD/CAD Signal Update
Last Thursday’s signals were not triggered as the bullish price action took place a little way below 1.3675 before the price moved up strongly.
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 1.3760.
* 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 1.3912.
* 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
Finally, it looks as if this pair has experienced a meaningful rally. Significantly, the rally began at an area at which support could have anticipated for technical reasons (1.3675). The rally seems to have stalled at the expected resistance level of 1.3912. What happens next will be very crucial. If we get another strong rise following a pullback, there may well be a major rally of at least several hundred long pips providing an excellent reward to risk scenario, so it is going to be worth watching this pair carefully.
A look at the daily chart confirms this scenario. A bullish pin candle was formed last Thursday touching the 50% Fibonacci retracement of the recent major leg up, and it broke bullishly the very next day.
There is nothing due today concerning either the CAD or the USD.