USD CAD - Daily Candle Chart 2nd April 2009

USD CAD - Daily Candle Chart 2nd April 2009

Yesterday’s upthrust coming on the back of the hanging man of Tuesday suggests that the mild bullish bias of the last few days may have run its course even though the close finished above all three moving averages, and that the bearish reversal seen in the monthly chart may be coming into play sooner than expected.   This may now lead to a period of sideways consolidation but with a bearish tone as yesterday’s high failed to break through the resistance area at 1.2720 indicating that any move up has temporarily stalled and we may see a fall back to retest at the 1.22 region or below.

Al the fundamental news on the economic calendar for today is in the US and I have covered this in more detail on my eurodollar site.  With the G20 summit soon to reach its conclusion any communique released this afternoon will be closely watched across all markets for any clues as to further quantitative easing, fiscal policy or even a move back to the gold standard if Russia and China get their way!

My suggestion for today is to look for small short positions in the shorter time frames and wait for markets to absorb whatever is decided (or not) by G20 leaders.

In the meantime you can keep up to date with all the latest currency news, fundamental news and live currency charts by simply following the links.  Details on a good ECN broker are also included.