US Dollar to Canadian Dollar - Daily FX Chart 13th May 2009

US Dollar to Canadian Dollar - Daily FX Chart 13th May 2009

Yesterday’s candle finished the day in a down bar, having initially risen in early trading which proved to be a short lived reversal following the better than expected fundamental news on the economic calendar from Canada which promptly strengthened the Canadian Dollar once again, leaving the bar with a long upper wick which bounced neatly off the 9 day moving average, adding weight to the bearish tone once again.  Yesterday’s rally provided some excellent opportunities to enter new short positions which I hope you managed to achieve.  With all three moving averages now weighing heavily on the pair we should see a re-test of support at the 1.15 level once again and in the next few weeks a possible move down to 1.1 in due course.  As always with such a steep fall we may see a period of sideways consolidation in the current trading range as the market takes a breather, and once again these should provide excellent opportunities for opening new trades to take advantage of the longer term downward trend.   The continued move lower is also supported by the technical picture in the dollar index which is also pointing to continued US dollar weakness in the near term.

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