USD/CAD Signal Update

Yesterday’s signals were not triggered as the bearish rejection of the resistance level identified at 1.3138 was too slow to be taken.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm London time today.

Long Trade 1

* Go long after bullish price action on the H1 time frame following the next touch of 1.3022.

* 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

* Short entry after bearish price action on the H1 time frame following the next touch of 1.3138 or 1.3241.

* 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

I was right yesterday in predicting that we would not hit 1.3138 until after that afternoon’s key news releases due for both currencies within this pair. It also was resistant, but there has not been much of a move down even though the Canadian GDP data was more positive than expected.

It is hard to say what will happen next. The USD will probably hold up today until the key data releases due during the early part of the New York session. If the USD data is poor, the area that the price is in should be ripe for a bearish reversal so that would probably be the strongest possible directional outcome later today.

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by ISM Manufacturing PMI at 3pm.