Attached is a 40 day chart of December Canadian Dollar.
There has been some consolidation at the upper
end of a well defined trend channel. A trade above 100.42 would signal a breakout and we would initiate a long bias. Upside
objective would be 101.20. Stop out level would be a trade below
99.90.
A rally in Canada would most likely coincide with a continuation of the "risk on" rally that began on Friday. The current tailwinds for risk assets are hopeful rhetoric on the fiscal cliff and the potential for increased Fed liquidity.
A rally in Canada would most likely coincide with a continuation of the "risk on" rally that began on Friday. The current tailwinds for risk assets are hopeful rhetoric on the fiscal cliff and the potential for increased Fed liquidity.