USDCAD May2010 Update

Hang Eleven focused on the USDCAD last week.

Part one

Part two


We update that forex analysis of the Canadian dollar trading against the American dollar.


We'd left off with the USDCAD quoting at 1.0593 and watched it run to 1.0850 and then retrace all the way back to 1.0435. By the end of the week, the last week in May 2010 the price rested at 1.0515 for the weekend.


We added a 200 SMA line to this chart. Notice that our MACD numbers run in close correlation to that simple moving average. A 200 SMA is considered a strong support and resistance area.


Usually when the price crosses 200 it signals a trend reversal. But usually is only a word and not a law. More often than not a price war breaks out on the line before the trend reverses or fails to reverse.



In this case where the USDCAD is the focus, the longer charts continue to signal a trend favouring the Canadian dollar.

The daily chart on the left shows a push or a test of that longer trend. The 4 hr chart on the left definately appears to be indicating a short term move towards 1.025 or so to test the 200 SMA on that chart. If it does then it will obviously print a signal to go short the USD on our Hang Eleven MACD.

Is it all tradeable?

We don't recommend trades.....we only write about this to keep busy.