USD CAD Daily Candle Chart - February 3rd 2009

USD CAD Daily Candle Chart - February 3rd 2009

It seems we are continuing the current “trend” of sideways movement, which makes trading extremely difficult in the usd to cad pair at the moment. Yesterday I suggested that if you had to trade the pair intraday, then small long positions were the order of the day, and in fact we saw a wide spread up bar candle, moving us back up into the sideways trend which has been in place since October last year. Whilst the range is wide, it does make trading extremely difficult as you are never sure whether the pattern will continue, or breakout above or below the support and resistance levels set ( I’m sure swing traders would disagree). Interestingly prices breached both the 9 day and 14 day averages, which have now crossed yet again. So my advice is the same as for yesterday – attempt small long positions if you must trade this pair today, with stops below in the 1.2100 region. Personally I am waiting for the trend to be established with a breakout above or below.

There is no fundamental news due for release in Canada today so the focus will be on the US with Pending Home Sales due out this afternoon. If you would like further details please just follow the link here to euro to dollar.

The short term and medium term outlook is sideways, the long term is bearish