Forex Headlines and Forecast with Chart Analysis USD/CAD

Tuesday, February 3, 2009

Daily FX Chart: USD/CAD

The Canadian Dollar has weakened lately against US Dollar, but considering the numerous factors against the CAD, it would seem that the Forex brokers and traders should be trading it higher. We note two factors that suggest USD/CAD may be ready to pivot higher here, even though it is in the middle of the recent medium term range between 1.1800 and 1.3000. First, the 21-day moving average fell last week and the investing and trading community has held this as support. Second, USD/CAD crossed above the 55-day moving average on Friday, only to close below that level. But today we see the pair charging back above that level, so it appears that we may be preparing for another go at the 1.3000 level. It all depend on what the Forex traders do with it today.

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Comment

EUR/CHF

Back end volumes moved about 0.5. Volume lower on Monday, with the big broker trading firms selling 6 month 1.50’s in large amounts at a 9.1 volume. Front end volumes came lower as well suggesting that the current EURCHF range will continue.

EUR/USD

Forex traders pushed high volumes most of the day, with the 1 month down from 20/21 to 19.5/20.35. This could indicate that the Forex brokers do not believe the pair will collapse any time soon, Today expect the contract to trade in the range or experience a slight increase.

USD/JPY

Volumes are stable, a little interest for front end 90-91 strikes, and however they are mainly broker trading on the sell side. Expect that the current trading range will continue.




2 comments:

Kh.Mohsin February 4, 2009 at 4:24 PM  

Good article, but the content should be more interesting and headings should be made to make the important areas prominent.

pallavi singh February 4, 2009 at 4:32 PM  

Thanks Kh. Mohsin,

I appreciate your advice. I think the heading is absolutely well defining the article.

Good Day,

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