Home > XE Currency Blog > Remember That The Long Term USD/CAN Chart is Very Dollar Bullish

AD

XE Currency Blog

Topics7223 Posts7268
By HaleStewart February 21, 2014 10:47 am
  • XE Contributor
HaleStewart's picture
HaleStewart Posts: 792
Remember That The Long Term USD/CAN Chart is Very Dollar Bullish

Sometimes its important to pull the lens back and take a look at the long-term picture.  Starting in mid-2009, the USD/CAN chart started to form a very long rounding bottom formation.  The pair broke through upside resistance on this chart at the end of last year.  Also note the bullish EMA orientation (all are moving higher with the shorter above the longer) and the fact that prices are using EMAs for support instead of resistance.  This move was caused by the Fed beginning its tapering program in conjunction with a slow-down in Canada.  Prices have sold off a bit since they broke through and are now at a key technical point. 

Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer

Paste link in email or IM