USD vs CAD - Daily Chart USD/CAD 10th June 2009

USD vs CAD - Daily Chart USD/CAD 10th June 2009

Yesterday’s candle on the daily chart for the dollar to cad pair was hardly a ringing endorsement of the bearish signal discussed in yesterday’s market commentary, which nevertheless closed the day lower but with wicks to both top and bottom.  The close of the day finished the session sandwiched between the 9 and 14 day moving averages, and whilst prices have moved lower once again in early trading this morning, the ensuing candle is once again characterized by a long lower wick, suggesting that we may be in for a period of sideways consolidation at this price point following the recent steep falls for the dollar to cad.

The fundamental news on the economic calendar covers both the US and Canada today, and in particular we have trade balance figures for both countries to be released simultaneously with the Canadian forecast being +0.9bn whilst the US figure is forecast to be -28.8bn, so it is little surprise that the price action for this pair is moving sideways.   In addition to the trade balance for Canada we also have the NHPI month on month figures which are considered a leading indicator of the housing market as it represents the change in the selling price of new homes which is forecast to show a fall once again (-0.3%) which is marginally better than last time which was at -0.5%.  Should this figure exceed expectation along with the trade balance this could provide a significant boost for the Canadian dollar and a further fall in the pair.   Details of the remainder of the fundamental data for the US can be found on the euro dollar site.

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.