Attached is a chart of December Canadian Dollar.
In this morning's piece we mentioned an inflection point
and potential upside breakout in the Dollar Index. This does
not appear likely, at this point, causing us to believe that
the full-fledged Dollar rally is on hold.
However, we do believe
there may be an opportunity in Canadian Dollar. If CDZ2 settles
below
100.28 we will consider a short position as it looks like
a bear flag formation has been confirmed. Downside
objective is 98.50-60 with a
stop loss on settle above 101.00. Had the Dollar Index confirmed direction, or, if it does in the future, we will become more confident and add to the shorts in this
position.