USD/CAD Signal Update
Last Thursday’s signals expired without being triggered.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered today between 8am and 5pm New York time.
Long Trade 1
Long entry after very strong bullish price action on the H1 time frame immediately following the first retest of the bullish trend line currently sitting at around 1.2430.
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 next test of 1.2553.
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
This pair had already falling when the poor USD news last Friday sent it further down still. The price has bounced up a little off a fairly long-term bullish trend line that is the support of the slightly bullish range we have been trading within for some time now. A decisive break below this support could see the price fall all the way back to 1.2100 and beyond. Alternatively, it might act again as a launch for another drive up. Quite possibly neither of much will happen before the FOMC statement on Wednesday. Be very careful in taking a long trade today: the action needs to be very bullish.
There are high-impact events scheduled today concerning both the CAD and the USD. At 1:30pm London time, a member of the FOMC will be speaking at a minor conference, and any unscripted remarks could impact the USD. Later at 3pm, there will be a release of Canadian Ivey PMI data and U.S. ISM Non-Manufacturing PMI data simultaneously.