USD vs CAD - Daily Spot Market 11th May 2009

USD vs CAD - Daily Spot Market 11th May 2009

Friday’s wide spread down-bar in the usd to Canadian dollar pair mirrored many other currency pairs as generalised dollar weakness took hold across the currency market strengthening the Canadian Dollar further and adding increased momentum to the bearish move lower, plunging past our second target of 1.15 and closing the day marginally above 1.1450.  With all three moving averages now falling off a cliff there seems little prospect of a short term bounce at present, a view reinforced by the dollar index which confirms the weakness of the US dollar across a basket of currencies, precipitated by continued strength in both equity and commodity markets.  The next target on the horizon is the strong support in place at 1.1 which we could approach quickly if the current momentum continues.  With no fundamental news on the economic calendar for either the US or Canada until tomorrow, when we have the trade balance figures released simultaneously for both Canada and US.  The forecast for Canada is 0.5bn and for the US -29.2bn.  My trading suggestion is as for last week, and to continue to build short positions, lock in profits, and to enter the market on any squeeze higher on an intra-day basis.

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.