USD to CAD - Daily Chart Analysis 5th January 2010
Despite several attempts to rise in the last few weeks, the usd to cad currency pair remains firmly bearish in the short term, having failed to breach the 1.07 price handle in the run towards the end of the trading year, which now present a potentially strong line of resistance for any recovery. Indeed this bearish sentiment was further reinforced in the first two days trading of the new year with a break below all three moving averages once again, and with a further line of resistance now in place at 1.045, the usd to cad looks set to move lower once again to retest the 1.02 floor which has provided a platform for a recovery in the past. The key longer term, will of course be the reaction of the US dollar to any fundamental data, and in particular the currency markets are now waiting for Friday’s release of the Non Farm Payroll data, which could well set the tone for the US dollar in the medium term. Any significant break the 1.02 price level will confirm that we are on course for parity once again, but with Friday’s data around the corner, do not be surprised to see a major bounce in the currency with the technical 1.02 level providing the platform. With all three moving averages now weighing heavily, the picture remains bearish, and only a break and hold above the 1.080 price level will suggest a usd to cad chart that is set to recover in the longer term.
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