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Analysis USD / CAD Technician - 22 August 2012



Wall Street closed last night a red candle, the light of the expectations of investors to obtain hints related to the Protocol of the Fed today, where there may be a decision today by the Fed to begin third quantitative easing program (QE3). The other opinion is expected intervention by the European Central Bank in the debt crisis faced by the euro zone.
And there will be a high concentration of different countries in Europe, where the Spain purchase worth 4.5 billion euros of bonds for 18 months, while Greece is to apply an austerity in the economy for two years Adhavin, and received the Netherlands warning from rating agency Moody's that the credit rating on the verge of the reduction. It is expected to announce that the United States of America today announced the protocol interest rate from the Federal Reserve, which is expected to be a discussion of the bank's commitment to keep interest rate at a level "close to zero" until 2014.

This represents the pair what happens in the markets all over the world because it is composed of two dominant currencies that represent two very powerful forces in the market. And many people consider to the U.S. dollar as the currency in which refuge to investors in difficult times, while the Canadian dollar is the currency that represents commodities such as oil, which are available in Canada. It can indicate this pair drops in the ratios to the weakening of the U.S. dollar or the high value of the Canadian dollar.

Today we saw a great example of this behavior is caused by the decline in the indicators in the time that there was a sudden increase in commodity prices. The pair has been a clear trend towards decline and though, Vkdqam corrects bearish. In the case of breach of 0.988 would be the spark to enter the shorts with a target level of 0.9803. Alternative scenario: will cause touching the 0.9922 level to rise to the level of about 096, which represents the SMA 20.