USD to CAD - Daily Candle Chart 30th March 2009

USD to CAD - Daily Candle Chart 30th March 2009

The week ended on the daily candle chart for the usd to cad with an up bar with the close of the day marginally above the 9 day moving average which came as no great surprise following the three consecutive small doji candles.  This up move has followed through in this morning’s trading although it is interesting to note that the high of the day, so far, has failed to breach the significant 40 day moving average and is currency falling back below both this and the 14 day moving average suggesting that his may only be a short term reversal in the longer term bear trend.  However, it is interesting to note that looking at the weekly chart we now have a small hammer candle which suggests we may see a move higher this week before the bearish pattern continues in the longer term.

There is no fundamental news in the economic calendar of any significance today relating to the usd to cad pair although tomorrow and the remainder of the week sees the release of a series of numbers for both Canada and the US, all of which need to be viewed against the backdrop of the G20 meeting.  On a personal note I think it is a disgrace that for this summit Canada has been relegated to tier 2 status given that it is one of the few countries in the global economy to have a sound banking sector based on prudent and sensible lending criteria.  In addition as a leading energy sector player I find it bizarre that they are not accorded tier 1 status.  Indeed if rumor is to be believed the G20 could soon become the G2 – ie the US and China!! (rant over!!)

Given all the factors this week coupled with the trading range that we are now seeing with the convergence of moving averages and with prices in the midst of a heavy consolidation area personally I would not be looking to trade this pair until later in the week when the picture may be a little clearer.

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