USD vs CAD - Daily Candle Chart 9th June 2009 ( USD/CAD )

USD vs CAD - Daily Candle Chart 9th June 2009 ( USD/CAD )

As I suggested in yesterday’s market commentary for the usd to cad currency pair, the candle closed the session as a ‘shooting star’, giving us a strong signal that this was merely a temporary reversal in the downwards trend, and indeed this has been confirmed in trading this morning with a break back below the 9 day moving average. Provided this candle is confirmed in today’s price action with a down bar, then we should be confident that the bearish momentum has been re-established once again, and a move back to retest the 1.08 region in the next few days seems likely, possibly followed by a deeper move to our initial medium term target of 1.05. I hope that ( like me ) you sat tight on your existing positions and we can now look to build further short positions in due course as the usd vs cad moves lower once again, using the shorter time frame charts to time your entry positions.

With no scheduled fundamental news in Canada today, the only items due for release are those in the US later today, and given that they are relatively minor, are unlikely to have any significant impact either on the US dollar or on the Canadian dollar. I have covered the news items in more detail on the euro to dollar site.

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.