USD CAD Daily Candle Chart - 18th March 2009

USD CAD Daily Candle Chart - 18th March 2009

Yesterday’s down bar, provided yet more evidence of the weakness in the USD to CAD at the moment, and the strength of the 1.3000 region, which is proving to be a major resistance to any move higher, with prices now below both the 9 day and 14 day moving averages, and now hovering above the heavy congestion of the last few months. This reminds me a little of a plane which is about to descend into the clouds on the final approach, although in this case, we are not quite sure whether the clouds will provide support or simply prove to be fluffy and white! With the resistance above, and support below, one or other of these will need to be broken before any longer term trend can be confirmed. My suggestion remains the same and that is to stay on the sidelines of this currency pair until we see a move through one of these areas.

The fundamental news on the economic calendar is primarily in the US today, with Core CPI and EIA oil stats leading the way, with the FOMC Fed funds rate rounding off the session. Always bear in mind when trading the Loonie that the oil stats will have more of an effect on the Canadian dollar, rather than the US dollar, due to Canada’s importance as an oil producer.

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