17th

USD/CAD 17th March 2009 - Daily Candle Chart

USD/CAD 17th March 2009 - Daily Candle Chart

Following the down bar of Friday this sentiment was repeated yesterday with another down day but with the opening gapped up making the fall less pronounced than otherwise would have been the case.  It is interesting to note that on both days the low of each bounced off the strong support now in place at 1.2645 so in the short term it would not be a surprise to see a short term reversal back up, possibly to retest the resistance at 1.3000 once again (for the 5th time).  This is an extremely difficult trading scenario given that we have strong resistance above and equally strong support below combined with a series of moving averages which are now beginning to converge once again and until we see a break above or below these areas it is almost impossible to forecast, for the longer term, in which direction the usd to cad will ultimately move.

My suggestion for today would be to set aside until we see whether the 2 bearing signals of the last few days hold sway and dictate the ultimate direction once again or whether the support becomes the dominant factor.

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