 Hello and welcome to the chart of the week video with me David Madden. Today's date is Thursday the 7th of March 2019 and the time has just gone 9 10 GMT. This week's chart of the week is the US dollar versus the Canadian dollar and taking a look at the bigger picture going back from September 2017 until now we can see that dollar CAD has been in a solid example of an upward trend, a nice series of higher highs and higher lows and taking a look at the price action in the last couple of days we can see at the market has been pushing higher and yesterday the dollar CAD reached a two-month high and that was shortly after the Bank of Canada kept interest rates on hold at 1.75% with the expectations and on top of that the Bank of Canada stated that the slowdown in the global economy is now more pronounced than originally thought so traders took that as an indication that the Bank of Canada won't be hiking interest rates anytime soon that's why we saw an increase in the dollar versus the Canadian dollar. We've moved back ever so slightly today but the upward trend of recent months is still very much intact and taking a look at the price action for the last few sessions where the market has been moving higher we can see on the indicator of the MACD histogram there's been a steady increase in positive momentum so the underlying market's moving higher and we're also seeing an increase in positive momentum so the upward move in the market is being confirmed by the steady increase in positive momentum so the momentum is with buyers and if you continue to press on higher from here we could be looking heading up towards the 1.36 area or even up to the December highs of in around 1.3660 which would be this region here but should we see a bit of a pullback we might see some fresh buyers enter the fold seeing as buying on the dips has been a popular strategy for the last year or two 15 months so if the market does drift a bit lower support might be found from this region in around here coincides in around with the 50 moving average this blue line here and the 1.38 moving average and we can see you can see back in January and also in February like the 50 moving average this blue line here acts as resistance in January, February and even actually as support and resistance in March and this yellow line here the 1.38 moving average acts as support on a number of occasions in both January and also in February and if an indicator or a metric has acted as support or resistance recently it makes it more likely that it will do so in the future obviously there are no guarantees so the 1.38 moving average comes into play at 1.3268 and the 50 moving average comes into play at 1.3286 in around that region we might find some support should we drift lower on the dollar cat and even if you drop below that and we go below 132 support might be found from this area here at the red line the 30 moving average which comes into play at 1.3165 we can see the market traded up below on a few occasions but still managed to eventually press on higher but if you do see a break below this area here the February low at 1.3368 that could be an indication that we're heading for further losses and it could take us back down towards the psychologically important 130 area or even if you go below that you could be looking head back down towards levels last in October in at one spot 2926 if you are going to be trading the dollar cat please keep an eye out for the following economic announcements later today we have canadian building permits and the u.s. job as claims number and tomorrow we have the all-important u.s. non-farm payrolls update and we also have the canadian jobs update so if you are trading this currency player please keep an eye out for those economic announcements and finally if you 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 a review on reviews and that's all for me this week thank you very much