Alright, so before we start today let’s see how our review yesterday and what happened with the AUS/USD. As you remember yesterday we talked about the amazing trend this pair has and how over the last few month we saw the great uptrend this pair offered us ( I will show you how much money you could have made yesterday with this pair).

Now let us talk more about the G7 (meeting of the finance ministers from a group of seven industrialized nations), as Forex traders we receive some very interesting news from those ministers and world leaders. All leaders made a bold statement expressing support for a strong dollar. The joint statement after their meeting in Istanbul was identical to an earlier statement of April “We come back and strengthen the common interest of our strong In recent months we began to see signs of global economic recovery, continuous improvement in conditions in the capital markets. However, there is no room for complacency, since the growth forecast is still not stable labor market conditions have not improved. To recovery will be based, we leave the support mechanisms in economics “, the ministerial statement said.  The ministers are seeking to strengthen the global market by indicating what they would like to see however we are still seeing a weaker buck today and the big question is, when will they intervene and make it a stronger dollar?

Fundamentals:  We have a few announcements today which will affect the market. Coming from United Kingdom we have the “Manufacturing Production M/M”. The previous announcement was 0.9% and the forecast for today is 0.4%. (08:30  GMT). Two more announcements coming in from Canada “Building Permits M/M” which will be released at 12:30 GMT. The previous announcement was -11.4% and the forecast for today is 4.5%. We have the “Ivey PMI”. The previous announcement was 55.7 and the forecast for today is 56.6. (14:00 GMT)

USD/CAD

The USD has lost it power over the last 3 days after it appeared like the USD was getting stronger.  We know that over the last few weeks we are seeing more sales of the USD and more buyers of the CAD and those actions are increasing the value of the Loonie. As we all know over the last 3 quarters the USD has been dropping against the majors against the EUR alone it is down 15% Y/Y already. Today we will wait and see what the result from Canada will bring today. Those results can give a strong indicator as to the direction of the CAD. I will Put Support and resistance lines so we can get a much better feel to where this pair goes. In a technical point of view we used a moving average of 30 days on a weekly and daily chart and with both it appears to be a down trend.