USDCAD Maintains Firm Support
- May 30th, 2011
The Canadian GDP on a quarterly annualized basis came in a touch weaker than expected although the month-over-month (MoM) was a bit better. What balanced that out was the prior month was revised down by 0.1%. So the MoM data balanced out.
The Current Account for the 1st quarter meanwhile was much weaker at -8.9B from -7.2B expected. The combination has forced the $USDCAD higher. The pair has good support against the floor trendline and the 200-hour moving average (MA), the green line in the chart above. Those levels come in at 0.97516 and 0.9748.
On the topside, traders should watch the 100-hour MA for clues. That level is represented by the blue line in the chart above and it currently comes in at 0.9779 level. A move above this level should lead to further upside potential. The 0.9784/89 highs from NY trade on Friday and the high for today are not far behind and other levels to breach to give the bulls more upside confidence.
Last week was largely a consolidation period that moved the price above the 100-day MA, but momentum could not be established. The 100-day MA today comes in at the 0.9753 level. With the low at 0.97504, this keeps the bulls in charge for the time being.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Tickers: USDCADblog comments powered by Disqus
Lydia Idem has been investing in equities for 16 years and trading currencies actively for 5 and a half years. Her trading style is simple and short term. With a special feel for sterling, Lydia trades almost exclusively the GBPUSD and EURGBP. You can follow Lydia on Twitter and StockTwits... (more)