Chart of the day: Is Canada leading?

Last week's dramatic slump in the value of the US dollar against its Canadian counterpart has forced us to look at this chart more carefully and be prepared to rethink our outlook. Having been stuck under 1.2800 since February, a rather messy multiple top was created. Not surprisingly trend line support was eventually broken by going sideways for so long. Wednesday saw a daily close below horizontal support at 1.2350, Thursday a close at the bottom edge of the Ichimoku cloud, likewise Friday as the cloud starts shrinking making it less supportive of the bull trend. Watch other major currencies to see if they confirm an interim top for the greenback.