Bearish tone continues for the Canadian dollar

CAD/USD - September futures daily chart
CAD/USD – September futures daily chart

Following on from my recent posts about the bearish nature of the CADUSD and the medium term prospects for the Loonie, today’s advance GDP release has helped to drive the Canadian lower once again, accelerating its downwards progress and adding to yesterday’s wide spread down candle. This candle tested the platform of support in the 0.9200 region which, on today’s release, now appears to have been breached with the pair currently trading at 0.9183, at time of writing.

This is key price level as it marks the upper region of the price congestion built during May and June and with a consequent floor in place at the 0.9110 region. Should today’s candle close well below the 0.9200 level, then this region will have been penetrated, and provided today’s trading volumes confirm the price action then we can expect to see a deeper move still for the CADUSD and a test of the support area at 0.9110.

By Anna Coulling

 

About Anna 1040 Articles

Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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