US Dollar vs Canadian - Daily Spot Chart USD/CAD 22nd May 2009

US Dollar vs Canadian - Daily Spot Chart USD/CAD 22nd May 2009

Yesterday the usd to cad continued its steep descent in a price waterfall easily breaching our initial target for this current trend at 1.14 and closing the day at 1.320.  With all three moving averages bearing down on the chart this price action has continued in early trading this morning with a further steep decline which now brings the 1.1 into view and given the present rate of fall this target could easily be reached in the next couple of days, at which point a return to parity becomes a distinct possibility in the medium term, and the only area of resistance now likely to impede this target lies at 1.08.  For those of you who have been following this trend with me for some time, my suggestion for today, given the national holiday on Monday in a number of countries leading to thin trading volumes, is to tighten your stop losses once again to lock in existing profits and to build further positions on the short side should we get any temporary reversals which, at some point, will be inevitable given the rate of decline.

There is very little in the way of fundamental news on the economic calendar for the US, the main focus is on Canada where we have the release of core retail sales data, and retail sales figures, both of which are due out shortly and which if better than expected should boost the Canadian Dollar even further.  The forecast for the former is -0.2% and for the latter +0.5%.  The only item of significant news in America is a speech this evening by Fed Chairman Ben Bernanke who is due to open a seminar at the College Law School in Boston.

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.