Strategy 15 january 2014

BOE Canadian Dollar TWI

Has completed a top and fallen into 3 year lows.

The Canadian Dollar is also set to see some weakness throughout 2014. At the end of last year we saw the Trade weighted index complete a 3 year top pattern, which suggests that the market is likely to come under increasing downside pressure in 2014.
We would allow for losses towards the 12 year support line, this is currently located at 99.08, but by June 2014 is at approximately 100. We will look for losses towards this trendline, although it should be noted this represents a minimum downside target. From current levels of 104.30, this would see a decline of approximately 4.3%
To know more click here PDF