Canadian $ – A Bottom Here or is it Look Out Below ?

canadian dollar weekly

The embedded chart in this post shows the weekly Canadian dollar futures (weekly nearest contract).

Note that we are sitting on a valid 2-2-2 Gartley pattern in which point D projects to the 97 level which is where we are at now.

On Mar 6, Bank of Canada Governor Carney speaks and there is a chance he may lift his language related to a tightening bias as the Canadian economy is feeling the effects of the global slowdown. December GDP grew slower than desired and there is other data to support the notion that Canada is not home free just yet.

I had been naked the March 97 puts but exited the trade today at a modest gain for fear that Carney alters his language.

If the Loonie breaks the 97 level, the entire 2-2-2 pattern will be invalidated and then we could likely see a re-visit of point X just under the 96 level.

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