FXstreet.com

Chart of the Week

This report has been deactivated

0

0

Strong CAD dollar

Fri, Nov 2 2007, 14:48 GMT
by Tatsuya Kawanishi

FXstreet.com


USD/CAD established a record low at 0.9323 at 13:45 GMT on Friday at Nov 2nd. What strengthens the CAD? Just a relative strengthdriven by the US prolonged recesion? Although the answer is not simple, several points can be considered. First thing that we should consider is the unprecedented high oil price. Canada is the world´s fourteenth largest producer of oil. A strong oil demand appreciates, or is bullish fot the CAD. Second , Canada is one of the world´s leading industrialized nations that did not send troops to Iraq. So Canada does not have any geopolitical risk so far. Substantive economic data clearly shows the growth of the Canadian Economy. The net change in employment rose by 63.0 K from previous 51.1 K.

The pair has kept drawing a clear downtrend line within a 130 pips range. On Friday, as the net change in employment and the unemployment rate released, USD/CAD showed a 130 pips fall.
The downtrend line is not likely to end any time soon. However, the pair is now back inside the projected line of the downtrend channel (third line), so it might get some support from here.

3 Moving Averages of 13, 21 and 51 EMA are drawn in red, blue and black respectively.

Chart of the week


Archive

FXstreet.com  | Portaferrissa 7, 1r 2a, Barcelona 08002, Catalonia - Spain
http://www.fxstreet.com | forex@fxstreet.com



Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FX Solutions LLC
Contact the broker/FDM
Open a demo account
Saxo Bank A/S
Contact the broker/FDM
Open a demo account
Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
Deutsche Bank
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.