CAD USD 13 Oct 2009

CAD USD 13 Oct 2009

The USD to CAD pair finally broke the run of down days ending the session as a doji cross candle, suggesting we may see a reversal higher in today’s trading session as a result.  However, given the strength and depth of the overall move lower it is unlikely that this will be anything other than a short term technical correction before the normal downward trend is renewed once again.  With strong resistance at the 1.06 level it is very unlikely that we will see a move greater than 250-300 pips and, in reality, less than this but nevertheless this signal should provide us with some excellent intra day trading opportunities in due course.

The only item of fundamental news on the economic calendar for Canada is the New Motor Vehicle Sales which are expected to come in flat at 0.0% having posted 5.3% back in September.  Whilst this number is of moderate interest as it can be taken as a sign of consumer confidence, the markets will be focusing on US retail sales and the FED minutes.  Details can be found on my main eurodollar site.  Normally we would also have the crude oil inventory data, however owing to Monday’s Columbus Day holiday these figures are due for release tomorrow.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.