Forex Investment and Currency Trading

USD/CAD – The move up from last week’s low remains intact but it is a grind and, as we saw late yesterday, prone to some fairly sizeable setbacks. Failure at 1.0584 yesterday is a modest strike against the USD at the moment and will become more of a hurdle if spot cannot improve on that quickly. The overhead resistance is firming up in the upper 1.05/low 1.06 area. Intraday, support stands at 1.0490/95 and a break below this support zone this morning could see USD/CAD tumble fairly quickly. Note a small open gap on the hourly chart that will have [...]

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EURUSD has met the short term target at 1.4968 which has provided resistance. While the overall trend may be up the pair is consolidating for now. A break of 1.4968 would be a bullish development that would then suggest a test of 1.5285.
We have seen a significant break on Crude which should at least test $85 in the short term. In other markets relative GBP strength in the short term looks likely.
Fixed Income, Commodities and Foreign Exchange – EURUSD short term target met. The pair is consolidating for now within the wider uptrend. A major bullish break has taken place [...]

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USD/CAD – The USD just melted away last week after tumbling below channel support at 1.0550. The market has bounced modestly so far today, having dropped to just under 1.03 to reach the weakest USD level since early August last year. Traders caution that despite the sharp slide in the USD this month already, significant rebounds are liable to remain absent for the moment; trend indicators are bearishly aligned across multiple timeframes and the USD is entering a period of the year which is often characterized by weakness. The minor intraday resistance is now at 1.0360/70 and there is a good [...]

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Gold has posted a weekly close at new highs and further gains are expected for up to $1,300 over the coming weeks and possibly months. EURUSD has also posted a weekly close above 1.4720 (Dec ’08 high) which is a bullish medium term break even if the market remains choppy in the short term. In other markets we have seen a good hold of support level on U.S. long end yields (30 year, 10 year and 5 year) and expect higher yields going forward. This is leading USDJPY higher and in a general USD bearish environment, JPY crosses are performing [...]

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