USD to CAD Monthly Chart - 2nd February 2009

USD to CAD Monthly Chart - 2nd February 2009

It is rare to find such volatility and indecision in the market, but looking at the usd to cad on a monthly basis this is exactly what we have at the moment. My own long term view is bearish and I believe we will see a fall back to somewhere near parity in the next few months, and this view would certainly be confirmed by considering the monthly chart, as we have now had three months of long legged doji candles, one after the other, all falling back from the same level of 1.300. So my view in the long term based on this chart is that we would expect to see a turn lower, since the previous trend was upwards, but as always we will have to wait for any confirming signal. Remember, in using this time frame we are looking for our long term trades which we may have in place for months, and sometimes even years ( I currently have two trades which have been open for over 2 years – not on this currency pair I hasten to add!)