USD vs CAD - Daily Candle Chart 28th July 2009

USD vs CAD - Daily Candle Chart 28th July 2009

The bears remained firmly in control once again yesterday, with the daily candle ending the session with a wide spread down bar, which briefly found some support at the level created in early June. With all three moving averages now weighting heavily on the currency pair, it seems unlikely that we will see a repeat of the bounce we saw from this level last time, but given the strength of this move, we do need to be cautious in building any further short positions at this stage. A break below this region could open the way to a deeper move test the 1.05 region once again, which in turn would open the way to a move back to parity in the medium term. If the US dollar continues its decline of the last few weeks then this could be achieved sooner rather then later!

All the fundamental news on the economic calendar today is in the US, with the release of the CB Consumer Confidence numbers which are due out shortly( forecast is 49.1 against a previous of 49.3) followed by a series of speeches from the policy makers including Geithner, Bernanke and Yellen.

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.