USD vs CAD - Daily Spot Chart USD to CAD 28th May 2009

I hope all of you who have been following me on the downward spiral of the US dollar against the Canadian dollar have enjoyed the ride and I still feel there is more profit to come out of this pair as we now look to our next target of 1.1 which then opens the way to a deeper move down to 1.06, so a further 500 – 600 pips in prospect to the “good team”!!

However, the forex market never, ever moves in a straight line but is characterized on the bear side by a series of lower highs and lower lows with a lot of sideways consolidation in between so before you rush in we should always expect some temporary reversals and the current price level of 1.18 we may see a short term move higher, particularly following yesterday’s candle, which whilst far from being a “hammer”, does suggest some bullish buying may have temporarily entered the market, possibly as the result of profit taking.  With the bulk of the fundamental news on the economic calendar relating to the US (today and the rest of the week) where investors will be trying to gauge the extent of the recent “green shoots of recovery” it is only this afternoon’s crude oil inventories and indirectly the OPEC meeting in Vienna (currently ongoing) which may impact the Canadian Dollar.  Indeed with crude oil prices looking extremely positive this is usually taken as a good sign for the Loonie.

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.