Forex Investment and Currency Trading

The CAD retains a firm profile this morning, making a little further progress against the USD and pushing up to its best level since November against the JPY. (Long CAD/JPY with the idea of the cross pushing up to the 86 area in the short term at least.) Price action today may be on the thin side, reflecting ongoing holidays in Europe and Asia. There is no Canadian data but US ISM and consumer confidence data may bolster the trend lower in USD/CAD if the data provide evidence that the US economy is stabilizing, which should have the effect of reducing “safe haven” support for the USD. Traders remain bullish on the CAD and look for further gains at least in the short term, with CAD strength underpinned by the improvement in broader (equities, credit) risk appetite. USD/CAD tested its 200-day MA (which we have at 1.1849) earlier today and spot has bounced modestly. The short term resistance this morning is at 1.1890/00 then 1.1985. Prefer to look to sell rallies and target a move to test 1.1764 (January low) at least.