USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.2858.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trades
* Go long after bullish price action on the H1 time frame following the next touch of 1.2858, 1.2812, 1.2788 or 1.2752.
* 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 Trades
* Go short after bearish price action on the H1 time frame following the next touch of 1.2958.
* 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
There were no big surprises from the Bank of Canada during yesterday’s monthly Rate Statement, but the CAD popped down a little in any case, breaking above the key resistance level at 1.2958. This will now logically become support and might now act as a launching pad for a bullish move of up to 100 pips, although this would certainly be against the trend of recent days. However, we have reached an area where there a lot of major support levels bunched close together, and these areas often produce turns if there is no strong momentum for a continuation.
There is nothing due today of high importance concerning the CAD. Regarding USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories at 4pm.