USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 1.3138.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am New York time until 5pm London time today.
Long Trade 1
Go long after strong bullish price action on the H1 time frame immediately following the next touch of 1.3031.
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 the next touch of 1.3138.
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
This pair is back in its strong long-term downwards trend, so short trades are likely to be more productive than long ones. The nearby support level at 1.3031 should be treated very carefully: any bullish bounce needs to be very strong before it could be considered for a long trade entry, and even then it is not likely to travel very far, so it should be prudent to be conservative in profit-taking.
The resistance at 1.3133 looks like a better and more productive potential trade.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed later by Crude Oil Inventories at 3:30pm.