 Hello and welcome to the chart of the week video with me David Madden. Today's date is Thursday the 9th of May 2019 and the time has just gone 1140 British summer time. This week's chart of the week is the US Donner versus the Canadian Donner, the Donner CAD. And if you take a look at the chart over the last 11 or 12 months we can see that the Donner CAD has been in a very clear upward trend, a series of higher highs and higher lows. And we can see here in late April the Donner CAD hit a level not seen since early January. So it's in and if you look at the price action in recent months it's been slowly but surely climbing higher and the upward trend is still very much in place. And if you take out the recent highs of April in that one spot 3221 this area here we could look at heading up towards the one spot 36 area. There's about a bit of consolidation in that area in December last year. And should we go beyond that we could be looking up towards the highs of December last, the highs of December January just gone in a one spot 3660 and if you take if you take out that high we could be go all the way back to this area here in a one spot 3790. These levels have been seen since May 2018 and as you can see given that's been a nice upward trend the last few months buying of the dip has been a fairly popular strategy with some traders. So if you do see any moves to the downside in the Donner CAD we could see fresh buyers enter the fold. At the market this managed to drift a bit lower support could be found from this blue line here the fifth day moving average which comes into play at one spot 3384 you'll notice how the fifth day moving average did manage to act as support on a few occasions in March and April and if a metric has acted as support in the past it makes it more likely it will do so in the future obviously if there are no guarantees similar with the one day moving average that acted as support on a few occasions as it saw the one day moving average which currently comes to play at one spot 3344 that might act as support in the near term should we see a move to the downside It's only really if you kind of take out the mid to April lows of this area here in around one spot 3274 because then could then we kind of begin to question the recent upward trend and then we might actually That could be an indication that the market is actually turning over on itself and a good head back down towards this red line here The dirty moving average in at one spot 30 one spot 3225 I already may be down as low as the kind of psychology born one spot 32 figure itself now some of the reasons for this for the diversions between the dollar and some of the reasons for the Dominance of the US dollar of the Canadian dollar has been the divergence of the two economies The first quarter US growth was actually quite strong It may not be as strong as initially expected given that we have seen a decline in US inflation, but the growth figures in the first quarter from the US were strong the latest jobless the latest Job-less employment figures from the US in the form of the non-farm payroll figures were quite strong on the flip side of things The cleaning dot clean the economy cooled at the back end of 2018 and also it has been some softness in construction and consumer Consumer spending in Canada in early 2019 and the Bank of Canada maintained interest rates At their level and they've actually actually downgraded that the growth forecast and they now predict At the first half of the Canadian economy isn't going to grow as much as they previously predicted So there is so so we there is this divergence between the two economies slightly and that's why we're seeing the US dollar I continue to push on higher versus the Canadian dollar now if you're going to be trading the dollar card Please keep an eye out for economic indicators tomorrow We have US CPI and we also have Canadian employment So we'd like to see some volatility on the back of those figures If you have any comments to make on this video or any of the other videos we've made here at CMC markets Please feel free to leave review on the reviews and that's off by this week. Thank you very much