USD to CAD Chart 15 Oct 2009

USD to CAD Chart 15 Oct 2009

The usd to cad managed to stage a small recovery yesterday, as it lurched higher from the depths of 1.02, ending the trading session with a narrow spread up bar but one with a wick to the upper body, suggesting that this may only be a temporary reprieve for the usd to cad pair!  The move higher was hardly a surprise, given that we have seen 10 consecutive days of down bars or sideways price action! Whilst the candle could be considered a bullish reversal ( and we may indeed see a bounce higher from here), the pressure being exerted from above by all three moving averages, coupled with the deep resistance, are likely to restrict any move higher to a minor rally, and this should therefore be seen as an opportunity to open further short positions as we continue to move lower in the short to medium term and on towards parity once again.

The only items of fundamental news on the economic calendar for Canada have been the Core CPI and CPI numbers which came in at 0.3% and 0.0% respectively.  Both the Core CPI and CPI measure the change in the price of goods and services puchased by consumers although the Core CPI does not include the e 8 most volatile items and with the trend this month showing that prices continue to fall it does not seem likely that the Bank of Canada will be looking to raise interest rates any time soon.  The items of fundamental news for the US are covered on my eurodollar site. However, you can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.