Canadian Dollar – where to from here ?

canadian gartleyThe embedded image in this post shows the weekly nearest performance of the Canadian dollar futures. I have overlaid a classic Gartley parallelogram on this chart. Notice how the apex of the parallelogram points right at the level where price turned down recently. The good news is, we may have already gone through most of the sell-off and there may be a countertrend rally that ensues. This countertrend rally will then give way to a 3rd drive lower. Note – Gann and Gartley were big fans of “3 drives” to a top or bottom. The completion of a 3rd drive lower will then set us up for a push higher which if you think about it makes sense. Canada is not immune to problems, but we are certainly better off than most G20 members which argues for a currency that is not going to fall apart.

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