USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 1.2900.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am to 5pm New York time today.
Long Trade 1
Long entry after bullish price action on the H1 time frame following the next touch of 1.2750.
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 Trades
Short entry after bearish price action on the H1 time frame following the next touch of 1.2880, 1.2906, or 1.3005.
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 pair made a bearish move yesterday, breaking below the support at around 1.2900 and clearly flipping it to resistance. In fact the resistance starts a little lower than that, at around 1.2880. A pullback to that level followed by another bearish turn could make an excellent short trade entry, as the price of Crude Oil continues to recover and push up the Canadian Dollar.
Although the next key support level is not until 1.2750, we can expect some support close to the round number at 1.2800 if and when it is reached.
Concerning the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time. Regarding the USD, there will be releases of CPI and Building Permits data, also at 1:30pm.