Chart of the day: Upside potential in Canadian dollar
Much has been made of the US dollar’s recent strength, courtesy of Trumponomics. The reality is that other than a few currencies that have their own issues, most majors are fairly stable against the greenback. The Canadian dollar, on the other hand, has actually strengthened against its southern neighbour, needing just less than C$1.32 to buy one American dollar. It has dipped below the bottom edge of the weekly cloud, having apparently found an interim high at 50 per cent retracement resistance. As and when the nine- and 26-week moving averages cross, all elements of this charting system will suggest further gains for the Canadian dollar, so expect a drop in the greenback to this year’s low at C$1.245.
Nicole Elliott is a technical analyst