USD/CAD Signal Update
Yesterday’s signals produced a losing short trade following the rejection of the resistance level at 1.3800.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time only.
Long Trade 1
* Go long following a bullish price reversal on the H1 time frame upon the next touch of 1.3675.
* 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.
Long Trade 2
* Go long following a bullish price reversal on the H1 time frame upon the next touch of 1.3620.
* 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 Trade 1
* Go short after bearish price action on the H1 time frame following a touch of 1.4000.
* 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.
Short Trade 2
* Go short after bearish price action on the H1 time frame following a touch of 1.4128.
* 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 seem to have finally got a strong, impulsive upwards move which broke resistance at 1.3800 very easily, although it was not able to crack the round number at 1.3900. There may finally be a good long opportunity here if the USD weakens and the price of Crude Oil continues to fall. If the round numbers at 1.3900 and 1.4000 end up cracking easily, that would be very suggestive of a coming move of a few hundred pips to the long side.
There is nothing due today concerning the CAD. Regarding the USD, there will be releases of PPI and Building Permits data at 1:30pm London time, followed later by the FOMC Meting Minutes release at 7pm.