USD/CAD Signal Update
Yesterday’s signals gave a nicely profitable short trade off the bearish pin bar rejecting the identified resistance level at 1.3005, albeit before the New York open so strictly speaking it wasn’t a valid signal. It looks as if it is definitely a good time to take some more profit on any position from here that one might have open.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Long Trade 1
Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.2800.
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 the next touch of 1.3005 or 1.3200.
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 the price was probably going to pop back up above 1.3005 because crude oil was finding it very hard to get above $40 per barrel. This turned out to be wrong on both counts and so the picture for this pair today looks more bearish than it did yesterday. If the price can stay below 1.3000 this week and actually drop even lower, that will be a sign that the price can really cut through the base in this area and continue to fall, giving encouragement to bears.
There may be minor resistance at around 1.2950, but apart from that we are some way from key levels either above or below the current price.
There is nothing due today regarding either the CAD or the USD.