USD vs CAD - Spot FX Daily Chart 30th April 2009

Yesterday’s wide spread down bar added considerable momentum to the downward move and with all three moving averages now weighing heavily on the usd to cad pair there is one direction in which this pair is likely to go and that is “Due South”.  Indeed the momentum of the move has increased in this morning’s trade with a further push down and we are now approaching our medium term target of 1.18 outlined in yesterday’s market commentary.  However, given the speed of the move we should expect a squeeze higher as traders and investors may wish to consider banking any  profits so my suggestion is to close out currently profitably positions and wait for any reaction higher.  Part of the reason for any reversal may also be due to the approaching support level at 1.18 which was also my initial target for this particular pair, and should this price point be breached in due course then we may be looking for a move to the next level at 1.15 in due course.  In addition with the imminent addition of GDP figures for Canada (just released bang on target at -0.1%) there is even more reason to close out profitable short positions.

Items of fundamental news on the economic calendar pertinent to the US are dealt with on the euro dollar site.  As far as Canada is concerned GDP have just been released (see above) along with RMPI (Raw Materials Price Index) data which came in significantly better than expected at a healthy 12.1% against a forecast of 1.9% and which should be good news for the Canadian Dollar.  IPPI (Industrial Product Price Index) was also released at the same time and as with GDP came in bang on target at 0.3% .  Finally we have natural gas storage in the US which always impacts the Loonie to a greater extent and the forecast for this afternoon is for an increase to 82bn cubic feet – almost double last week’s figure.

In the meantime you can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the appropriate links.  In addition I have provided information on an excellent ECN broker.