The date was May 6, 2009 and the Canadian Dollar was attracting traders way more than the American dollar.
This was just over one year ago and the trader sentiment overall remained strongly biased towards the CAD over the USD.
From 118 to 99 or parity USDCAD.
That was the story of the Canadian Dollar trading against the USD for that time period. The story was told on a wave on the daily MACD and there were plenty of bounces or retracements in that year.
Suddenly however it looks as though the USDCAD trend might be over for a time. On May 24, 2010 the USDCAD pair is quoting at 1.06 and if the sentiment towards the USD holds for the week at this level or higher then our daily convergence divergence indicator will have warned us that the next weeks or months favor going long the USD over the CAD.
Signals are just hints. They are not guarantees. So until the daily MACD closes at or above zero then we have to continue thinking that this is just a retrace into a daily rally favouring the CAD.
As such we look to lower timeframes for opportunies to sell USD and buy CAD. But we do so extremely cautiously as the MACD really looks like it is telling us that a reversal is about to play out.
To the four hour chart.
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