USD CAD 28 Sep 2009

USD CAD 28 Sep 2009

A quiet end to the week for the usd to cad pair, which ended the trading session with a doji cross candle, with the open and close finishing neatly at the same price level.  After Thursday’s sharp rise and break above all three moving averages, Friday’s price action was muted as indeed were many other currency pairs following the reaction to the FOMC meeting on Wednesday. With this news now finally absorbed by the markets, it seems certain that the US dollar will continue to slid against all the major currencies, and from a technical perspective for the usd to cad, this is likely to convert into a move lower in due course. Indeed the minor rally of last week is already starting to look weak with Friday’s candle the first signal that the move is lacking any momentum, a view reinforced by the strong resistance level now immediately ahead which seems likely to provide a stiff barrier to any move higher. The key level for any sustained move higher is the 1.100 price, but from a technical perspective the usd to cad pair are looking bearish once again, and we should see a continuation of the move lower during the early part of the week, possibly to re-test the support level now in place at the 1.065 region.

Monday is a very quiet day for fundamental news on the economic calendar for both the US and Canada, with the only news of any note being a speech by the Bank of Canada Governor Mark Carney at the Chamber of Commerce in Victoria – the text of the speech is being released 15 minutes early so the markets may react beforehand.

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.