USD vs CAD - Fx Chart For 29th April 2009

USD vs CAD - Fx Chart For 29th April 2009

As we expected yesterday’s rally duly ran out of steam finishing the day with a failed attempt to break above the 9 and 14 day moving averages with a long upper shadow and small body replicating the price action of the last two highs in this current downwards trend.  This down trending channel has been strongly confirmed in this morning’s trading with a wide spread down bar on the day so far and as I have been suggesting for some time we could now see a strong move back to re-test the 1.18 region and below in due course.

There are a number of important items of fundamental news on the economic calendar for the US dollar whose impact  I have covered in detail on my eurodollar news blog.   The items are the Advance GDP figures, crude oil inventories and of course, the much awaited FOMC rate decision and statement this evening.   In addition from now on all markets will be reacting to the swine flu situation which will add yet another layer of uncertainty and concern.  My trading suggestion for today is to build on any short positions looking for a price target in the medium term at 1.18.

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.