Currency Trading Daily Chart - USD vs CAD 17th April 2009

Currency Trading Daily Chart - USD vs CAD 17th April 2009

As suggested in yesterday’s commentary we did indeed see a short term reversal or short squeeze in the usd to cad currency pair, and this reversal may continue for a day or so before we see a continuation of the bearish trend reinstated once again, and I hope you found some opportunities in yesterday’s up move to open some new medium to longer term selling positions.  Today’s price action has shown much the same pattern with a failed attempt to rise once again providing opportunities to sell into the market.  With all three moving averages pointing lower, and the current price point having penetrated the significant support at 1.2190 this area will now provide strong resistance to any attempt to move higher, and as a result we can expect a retest of the 1.1850 in due course.

The fundamental news on the economic calendar specific to the Canadian Dollar are the CPI figures which have just been released with the core CPI coming marginally better than expected at 0.3% against a target of 0.2% and the CPI data coming out marginally worse at 0.2% against a target of 0.3%.  Of these two figures the first carries more weight and having come in marginally better this should provide boost to the Canadian Dollar helping to push the usd to cad pair lower.  The other news is all in the US and I have covered this in more detail on the euro to dollar site.

In the meantime you can keep up with all the latest fundamental news, latest currency news and live currency charts by simply following the appropriate links.  You can also find details on an excellent ECN broker.