USD to CAD - 24th March 2009 Daily Candle Chart

USD to CAD - 24th March 2009 Daily Candle Chart

The bearish momentum in the USD to CAD pair continued unabated yesterday, with a wide spread down bar on the day, closing just above the 1.2200 region, and well below all three moving averages which are now adding weight to the fall. This move is also supported by the COT index which has now been added to the COT report site and make interesting reading when viewed in conjunction with the spot market analysis. As we can see from the chart we are now moving into an area of heavy support and congestion in the 1.2150 – 1.2225 region, and this may provide some temporary support to any further fall. If this is penetrated then we could see a move lower to retest the 1.1800 region in the short to medium term. My suggestion for today is to look for selling opportunities based on any reaction higher in the hourly charts.

The main fundamental news on the economic calendar is once again likely to be dominated by a speech by Ben Bernanke ( and Tim Geithner) on the AIG situation, and in particular the bail out and misuse of the FED funds, as they testify to the House Financial Services Committee. The session is in two parts with the first being a pre-prepared speech, followed by a Q & A session, during which we are likely to see market volatility as unscripted answers often provide more clues than the speech itself!

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