Canadian dollar has touched its highest level Sep.13/07
Forexmentor.com Forex Trading Price Action
Canadian dollar has been rising against its U.S. counterpart and, as a matter of fact, has touched its highest level since late July. This is in concert with equity markets and commodity prices rallying, and expectations for a U.S. interest rate cut. The loonie has pretty much been moving in lock-step with equities since the credit crunch hit in August. Persistently strong energy prices have also added fuel to the loonie’s fire, with oil achieving a record high over concerns of thinning world supplies. Gold has also achieved a record high – a 16-month one to be exact.
Canada is a major producer and exporter of oil and gold, and its currency often moves in tandem with their respective prices. Right now, as I write this, the daily chart for the loonie is putting in what appears to be a double bottom – although, of course, it could be broken, and that would add fuel to the notion that the supposed head and shoulders pattern is about to unfold with its
price projection – downward.
Let’s not forget, however, that the credit crunch is far from over, and Canada’s economy is not going to escape its wrath any time soon. Stay tuned to www.forexmentor.com for all the latest breaking developments in the currency markets.
See latest sample AM Review at: http://www.forexmentor.com/sampler/
