USD to CAD - US Dollar Canadian Dollar Exchange Rates 5th June 2009

As I discussed in yesterday’s post, we are at an interesting point on the usd to cad daily chart, as we now need to make some decisions with regard to closing out our long term short positions and opening any new trades, so I will try to provide a clear analysis this morning! Wednesday saw the short squeeze duly arrive, with a wide spread up candle, closing marginally above the 9 day moving average , and failing to reach the 14 day average, and with the low of the day aligning with the previous two bars. Yesterday’s trading session ended with a down candle, with the high of the day bouncing neatly off the 14 day moving average, suggesting that this is acting as a barrier to any move higher, and allied to the fact that the down bar failed to confirm the bullish signal of Wednesday. If we consider both these factors together then my own conclusion is that this was a temporary reversal with the market stopping to draw breath, before moving lower once again. However, given that we have two very important pieces of fundamental news on the economic calendar today, namely Non Farm Payroll in the US, and the equivalent employment data in Canada in the next few minutes, I would suggest you wait until Monday for the dust to settle, before making any decision ahead of the weekend. With all three moving averages pointing lower, the technical picture ( for the time being ) remains firmly bearish for the usd to cad currency pair.

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.