Several Live Signals On The Board-USD/CAD Update
Shain Vernier • 1 min read
It has been a productive day on the signal front, with several trades hitting their take profits. Plays in the DAX, gold, and the USD/JPY have all cashed in. There are a few live signals currently on the board, so be sure to check them out.
The USD/CAD short recommendation I have issued over the past several sessions went live a bit earlier. It initially performed well, trading into the green over 30 pips. Those gains have been largely given back, as price is rotating near 1.2900. Ultimately, the success or failure of this trade idea will hinge upon this week’s API and EIA crude oil inventory cycle.
Thus far, the USD/CAD has posted an intraday high of 1.2912. This is a test of the double top area of 1.2909-1.2916.
Here are the key levels from the daily timeframe for the remainder of today’s forex session:
- Resistance(1): Double top formation, 1.2909-1.2916
- Resistance(2): 50% Fibonacci retracement of 2017’s range, 1.2926
- Support(1): 20 Day EMA, 1.2806
- Support(2): Bollinger MP, 1.2791
Bottom Line: Active trade management is an important aspect of profitable trading. Price action for this trade was initially positive, creating a nice 30 pip profit. If you took the money, kudos! This trade still has downside potential, as the double top formation is holding.
As stated earlier, the crude oil inventories will determine the price action of the USD/CAD for the coming 24 hours. In the event that price moves in our favor, it may be a good idea to take what the market gives and move on.