USD to CAD - Daily Forex Chart 28th April 2009

USD to CAD - Daily Forex Chart 28th April 2009

Yesterday’s general market flight into the US dollar prompted by a combination of swine flu wrecking any hope of a global economic recovery as well as worries that both Bank of America and Citigroup will require yet more money to shore up their capital base translated into a move higher by the US dollar in the usd to cad pair.  The high of the day bounced off the cross between the 9 and 14 day moving averages suggesting that this was only a temporary reversal, although it is important to note that the open of the day was in fact gapped up from the previous close.  This temporary change of direction has continued in this morning’s trading but once again seems to be losing steam as prices approach the moving averages and we can therefore expect a continuation of the downward momentum in the trending channel of lower highs and lower lows in due course.

With no important items of fundamental news for the Canadian Dollar either today or for the rest of the week the market is looking to the US for market direction.  Later today we have the CB (Confidence Board) Index which is expected to come in at 29.6, up from 26 last month.  If the number is better than expected then we could see some further US Dollar strength.   My trading suggestion for today is to continue to look for small short opportunities in the 15 and 30 minute charts with tight stop losses and looking for shooting star candles and bearish engulfing patterns.

In the meantime you can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the appropriate links.  In addition I have provided information on an excellent ECN broker.