USD/CAD Signal Update
Yesterday’s signals produced a profitable long trade following the bullish engulfing candle rejecting the identified support level at 1.3060. Part of the trade should still be running in profit. There was no bearish price action at either 1.3121 or 1.3163.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered from 8am to 5pm New York time today only.
Protect any open trades by the New York Open.
Long Trade 1
* Go long after bullish price action on the H1 time frame following the next touch of 1.3060.
* 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 1.3163 or 1.3179.
* 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
We have a more bullish picture. Yesterday I identified 1.3060 as having a good probability of support as the higher low of a previous Quasimodo formation. It acted as strong support right away, and ironically a new higher bullish Quasimodo has formed off it with the new higher low at 1.3083. So there are a few reasons to see the price moving higher over the short-term.
However, it is important to remember that we have big news due later today, especially on the Canadian side, so anything might happen. It would be a good idea to book most of any long profit before those releases.
The long-term charts show a fair amount chop and consolidation in the current price area, but perhaps with a slightly bullish bias.
Concerning the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Regarding the CAD, there will be a release of the Bank of Canada’s Monetary Policy Report, Rate Statement, and Overnight Rate at 3pm, followed about an hour later by the usual press conference.