USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.3049.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am New York time and 5pm London time today.
Long Trade 1
Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.3005.
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 1.3133.
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
This is one of the few currency pairs that had a meaningful technical change yesterday: new support was established very confluent with a key psychological level, at 1.3005. We now have a much closer floor than the previous level of 1.2800. Above, there is resistance fairly close by at 1.3133. A sustained break above 1.3150 would be a very bullish sign, but it is more likely that the resistance will hold until the FOMC release tomorrow.
Concerning the CAD, there will be a release of Trade Balance data at 1:30pm London time. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.