USD/CAD Fx Strategy Chart 19th May 2009

USD/CAD Fx Strategy Chart 19th May 2009

Yesterday’s wide spread down bar brought an abrupt end to the short squeeze higher as outlined in yesterday’s market commentary, reaffirming once again the bearish tone for the usd to Canadian dollar pair which has continued in early trading this morning, and I hope you followed my suggestions to establish further short positions or build on existing ones.   The close of the day finished below all three moving averages once again, and the key for any deeper move lower will be a break below the 1.15 price point where prices stalled at the first attempt to break this level.  Should this region fail to hold this time, as I expect, then we should see a much deeper move in due course providing more opportunities to build short positions on any intra-day reversal.

Items of fundamental news on the economic calendar for both the US and Canadian Dollar include a speech by Bank of Canada Gov Council Member Murray and the Building Permits and Housing Start figures for America.   If the housing data comes in better than expected this should boost equities further with a consequent weakening of the US Dollar and strengthening of the Loonie as a result in which case we should see a continuation of the downward pressure on the usd cad.

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.