Canadian and Aussie Dollars May 16

FX Strategy Video > Currency Pairs Analysis

Looking at the Canadian dollar, we can see that the USD has been gaining as of late. The USD is certainly in a downtrend, and this latest move doesn't change this at all. In fact, we are rapidly approaching an area (0.97) that is offering significant resistance. Because of this, the sellers should be stepping in soon. If not, the pair could reach parity - which will certainly bring the sellers in. This pair is being influenced heavily by the commodity sell off we are seeing now - especially oil. The Australian dollar is currently testing the important 1.05 psychological level, and looks to find its footing at this point. The AUD has been sold off as gold has fallen, but the trend is up and this move doesn't change that fact. Remember, it was just a couple of years ago when we were amazed at the AUD/USD being as high as 0.80! If the .05 gives way, the 1.02 will be the next massive support area.

Published on 14th of May 2011
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