Canadian Dollar Marches towards Parity


After testing the falling trendline, prices have resumed their downward trek. Interestingly the move down today is symmetrical to the move up that took price up from 1.01 to 1.0240 (see green box), a week ago. This suggests an about face has occurred, similar to a doji. Prices should move quickly towards resistance near 1.000, and may succeed in breaking through this time.


The pound continues to trade within a well defined channel, but has largely surrendered the gains it made one month ago. Nonetheless, the overall trend remains up, so long as the pair can stay above support at 1.5650. Look for the uptrend to resume on a break of the upper channel line.


After a spectacular drop, oil prices consolidated briefly, before rallying strongly today. The close was right at resistance, just above $84, which may offer a good opportunity to go short. If prices keep rising, look for a reversal around 85.50, which is the Fibonacci 61.8% retracement, as well as the next resistance point.

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