USD/CAD on a Strong Support

DailyForex.com Team

By: Bastian Rubben

The US indices opened the trading week on mixed territory but with a strong finish that indicated that the stocks are getting ready for another break-up. The volatility in the markets was under the average since the investors are waiting for the FOMC rate statement tonight. Therefore, the volatility is expected to remain low until the investors hear Bernanke's speech. Pay attention to the fact that both the Forex and stock markets tend to be jumpy during the moments of the rate statement, so the risk in trading is much higher in that time.

Since the stocks did not make any significant change, the USD is stamping but tends to be on a bearish momentum against the other major currencies. The Canadian dollar is one of the currencies that trying to start a strengthening movement against the USD, and after the pair USD/CAD has failed in breaking-up the resistance at 1.005 several times in the recent weeks, it is now trying to break-down the support at 0.99, which it failed to break two weeks ago. In fact, the pair has been moving through a narrow channel between 0.99 and 1.005, and if the current pattern remains, the pair might rise to the upper boundary. However, if the CAD succeeds in breaking-down the support at 0.99, the pair might slide to the next support at 0.975.

USD/CAD Analysis - March 13, 2012

DailyForex.com Team
The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.

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