Commentary on the Canadian dollar

Forexmentor.com Forex Trading Price Action

The outlook for Ontario is gloomy – Ontario is Canada’s largest province. It makes up 40% of the Canadian economy. The strong Canadian dollar is killing manufacturing in that province. There is an expected housing slowdown. Who could have guessed? Low inflation data is bringing into question the notion of any further rate hikes.

The Canadian dollar’s ascent over the past three weeks has been the result of a weaker US$ - not strong economic fundamentals. It is expected that the Canadian dollar will do the ‘Whack-a-Mole’ thing – just poke its head above US96cents, and get beaten back down. Hence, the creation of a new indicator – called the ‘Whack-a- Mole Indicator.’

You heard it here first folks. Translation: The Canadian dollar could be topping out – i.e., the USD/CAD pair could finally be bottoming out. Hmmmmm… Stay tuned at www.forexmentor.com for the latest developments in this pair. Oh, did I forget to mention that positive divergence has formed on the daily chart for this pair? That’s bullish, by the way!

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