USD to CAD Daily Candle Chart - 27th March 2009

USD to CAD Daily Candle Chart - 27th March 2009

There is little to add to our analysis of this pair and yesterday’s candle which was a perfect doji cross simply reinforces the general picture of the likelihood of a continuing period of sideways movement and consolidation prior to a move a lower which we should see in due course.  This is further emphasized by the 9 day moving average now crossing over the 40 day – a dead cross. My only slight concern at the moment looking at the weekly chart is the tweezer bottom which is now forming over the last 2 weeks and we may see prices rise temporarily before they fall.

Given the somewhat contradictory signals and next week’s heavy list of fundamental news items in the economic calendar which includes Canada’s GDP, a whole host of numbers from the US, non farm payroll on Friday and the build up the G20 meeting my advice is to step aside for today.

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