USD/CAD Signal Update
Last Thursday’s signals were good forecasts of that day’s turning points. The short off 1.2575 did not last long enough to trigger on the H4 time frame, but long at 1.2520 would have been an excellent trade, although it strictly was not triggered as there was an hourly close below that level.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
Long entry after bullish price action on the H1 time frame immediately following the first test of 1.2520. Ignore closes on the H1 time frame as invalidating the reversal until there is a close below 1.2500.
Put 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 immediately following the first test of 1.2740.
Put 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
The pair is still firmly within this slightly bullishly inclined channel that it has been stuck in for weeks. As the support just above 1.2500 is holding, the pair looks somewhat bullish in the short term, but only mildly so. The CAD has also been strengthening somewhat lately as a stand-alone currency. Therefore upside may be limited for the time being.
There are no high-impact events scheduled later today concerning either the CAD or the USD.