USD/CAD - Daily Candlestick Chart 1st April 2009

USD/CAD - Daily Candlestick Chart 1st April 2009

Yesterday’s candle which closed marginally lower on the day nevertheless provided a modicum of bullish momentum to the existing, as I suggested, with prices initially falling and then recovering in the evening session to close well above all three moving averages.  Of particular note was the low of the day which bounced neatly off the 14 day moving average and with this average now crossing below the 40 day moving average this is now adding weight to a move higher.   For longer term trading I would advocate caution as the monthly chart now has a strong bearish reversal signal with a long legged doji, however, for intra day trading I would look for potential long positions buying into the market on any dips in the short time frame charts.

With regard to the fundamental news on the economic calendar for both the dollar and loonie there are several major announcements today and all the US dollar related news is covered for you on the euro to dollar site.   As for the Canadian Dollar there are 3 main items of news, the first of which is the crude oil inventories, which although released in the US can have a greater effect on the CAD due to Canada’s status as a major energy provider.  This evening we have two speeches by Mark Carney, Governor of the Bank of Canada who is due to speak at the North West Territories Chamber of Commerce in Yellowknife (fans of Ice Truckers will no doubt recognise the name!).  The speech is followed by a press conference with a question and answer session which may inject some volatility into the usd to cad pair during this evening’s trading session.

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