USD vs CAD - Daily FX Chart 1st May 2009

USD vs CAD - Daily FX Chart 1st May 2009

The usd to cad paid seems to be reaching our 1.18 price target much faster than we expected with yesterday evening’s slight reversal only providing a temporary blip in the strong downwards move which has gathered pace in the last three days and has continued into this morning’s trading.  The key to the future of this move will be whether the resistance at 1.18 holds firm or whether the current move simply blasts simply through and if so then we could a move in the next few weeks to re-test 300 pips below at 1.15, and if this region is breached then we could see a complete collapse of the US dollar and an approach back towards parity once again.  One of the most popular tools that I use personally in my currency trading is the dollar index and I have provided here so that you can follow my commentary on another site.

The value of the dollar index is that as a sentiment indicator it provides a view of the US dollar against a basket of currencies which are weighted to provide the index and at present the index is at an interesting point technically sitting on the lower edge of an upwards sloping triangle and should this fail to hold we could see significant dollar weakness in the medium term. With no fundamental news on the economy calendar for Canada the market is only waiting for the ISM and UOM data for the US – all of which I have covered in the euro to dollar site.  Please also remember that it is a national holiday in many countries both today and Monday so trading volumes are thin and prices may be erratic.

In the meantime you can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the appropriate links.  In addition I have provided information on an excellent ECN broker.