USD/CAD Signal Update
Last Thursday’s signals produced a very profitable long trade following the bullish bounce from the supportive zone at around 1.3000. There is a lot of profit there but it’s a choppy pair right now so it should probably be taken off the table.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade 1
Long entry after bullish price action on the H1 time frame following the next touch of 1.3135.
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 1.3241.
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 last Thursday:
“Below of course is a really key area that could provide long-term support: a little zone that stretches from approximately 1.3000 to 1.3025, and of course the 1.3000 number is psychologically key. We have already had a recent double bottom so look for a false break below the lows and a quick bullish reversal as a possible great long trade set up ahead.”
This is exactly what happened and it may be a good long-term trade to hold onto, at least partly. Long-term charts show a slow but steady upwards trend although the action is very choppy. Due to this choppiness, it is still possible to look for both long and short trades off reversals at key levels.
The area between about 1.3250 and 1.3300 may be very difficult to break above.
There is nothing of high importance due today concerning either the CAD or the USD.