Maybe a bottom for the Canadian dollar at $0.9400
Canadian dollar weekly chart courtesy of StockCharts.com
The major trend is down, the intermediate trend is down and the near-term trend is down for the Canadian dollar. It is trading below the 200-day and 50-day simple moving averages. But in all this negativity, there is a glimmer of hope—depends on your perspective—that the bottom is $0.9400. This was a support point back in October, 2011 and the hammer is an indication of a bottom. But never trade the bottom: you know the adage about never trying to catch a falling knife.
Reference the last analysis for the TSX Index and take a look at the performance of the materials sector. Then take a look at the chart for copper. The Canadian dollar can never escape the fact that it is a commodity currency.
Canada has some nice pizza restaurants and great ski hills: it is not all about copper and oil.
Reference relevant articles picked from the Web:
- Loonie may fall further in first half of 2014 – FP – Dec 12, 2013
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