USD CAD 6 Sep 2010
A seminal week for the usd cad, and following its anticipated failure to breach the 1.066 price level, the currency pair reversed lower once again last week with a spectacular fall on Friday propelling the pair almost back below the 200 day moving average. This move lower was signalled initially by Wednesday’s bearish engulfing candle which gave us a clear forex trading signal of negative intent which was duly validated on Friday with a sharp move lower as the forex trading session ended as a wide spread down candle which broke below both the 14 and 40 day moving averages. This negative sentiment has continued in early trading today as the pair break below the 200 day average at 1.0362 at time of writing. The technical picture now appears to be set up for a further move to the downside to re-test support at the lower level of the current trending channel where 1.0147 appears to be the base. With a raft of fundamental news for Canada this week we can expect to see some particularly volatile trading and any break below this point will signal a much deeper move and similarly a break above 1.065 to the upside will signal a breakout from this trending area. As the weeks go by this trending channel is becoming increasingly well defined and, as such, any breakout will give us a clear longer term trend with the prospect of longer term forex trading opportunities as a result.
You can find all this week’s fundamental news for the forex market and the usd cad by simply following the link.
