Finotec News Archive - April 07 2008
CAD elevated as U.S. dollar continues downtrend.
The Canadian dollar closed lower versus the U.S. dollar on Friday as data showed job growth moderated in Canada in March after two solid months, but the currency still ended the week with a 1.2 percent gain.
Anthony Boyajian 
07 April 2008
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| Long signal | Short signal | |
|---|---|---|
| Buy a break of resistance level at 1.0100 | Sell a break of support level at 1.0025 | |
| USD/CAD | Buy a break of resistance level at 1.0170 | Sell a break of support level at 1.0000 |
| Buy a bounce at 1.0025 | Sell a failure of breaking the resistance 1.0100 |
Fundamental
The Canadian dollar closed lower versus the U.S. dollar on Friday as data showed job growth moderated in Canada in March after two solid months, but the currency still ended the week with a 1.2 percent gain.
Canadian bond prices finished higher across the curve as the jobs report was followed by U.S. jobs data that persuaded many investors that more aggressive interest rate cuts in the United States will be needed to stimulate the economy.
Details of the Canadian March jobs report signaled a softening jobs market and slowing economy, which supported calls for another Bank of Canada rate cut when the bank next sets interest rates on April 22.
Technical
The U.S. dollar may continue the downtrend against the Canadian; according to technical charts the market is in a bearish direction with confirmation of many indicators like RSI, which is in a downtrend, MACD crosses the signal line and is pointing downwards, Bollinger gives us a bearish signal by closing the candle below the middle band.
USD/CAD (Daily Chart)
The primary tendency started in Nov 2007
USD/CAD (4 Hour Chart)
The medium term trend breaks the standard error channel lower line
USD/CAD (Hourly Chart)
The Minor trend shows us clear downtrend
Resistance
1.0100
1.0170
Support
1.0025
1.0000
Finotec Analysis Team
07 April 2008
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