USD to CAD - Daily FX Chart 27th April 2009
The usd to cad currency pair duly delivered on Friday with another wide spread down bar to add to that of Thursday, and to further confirm the bearish signals of the two shooting star candles as outlined in the market commentary earlier in the week ( nice to be right once in a while!). Friday’s candle was even more significant as it broke through both the 9 day and 14 day moving averages during the trading session, and in addition cleared strong support in the 1.2200 price area adding weight to the bearish reversal. Given the downwards trend that now seems to be established our next price target is 1.2050, and should this be breached then we should see a move lower to retest the 1.1800 region once again in due course, a view reinforced by the weekly chart which has a bearish flavour, although still trading in a the consolidation region of the last few months.
With no fundamental news on the economic calendar, either for the US dollar or the Canadian dollar, today could be a relatively quiet trading day, and given that we have seen a minor pullback in early trading, then my trading suggestion for today is to build short positions using the intra day charts for your entry points, with any stop loss set wide, and certainly above the highs of last week. The main news this week ofcourse for the US dollar comes on Wednesday, with the FOMC statement and FED Funds Rate decision, and for the Canadian Dollar, the oil inventories on the same day, followed on Thursday with the GDP data, so the later part of the week should see some more volatility in the usd to cad.
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