Tactical Techni...'s  Instablog

Tactical Technician
Send Message
I like TA, and I especially like it when I'm right.
  • The Relationship Between The Canadian Dollar And The Price Of Gold 0 comments
    May 23, 2013 2:40 AM

    Could today's breakdown in Canadian currency mean more downside pressure on the price of gold?

    (click to enlarge)

    It's not as far-fetched as it might sound. The trajectory of the two trend lines on Canada's dollar and the price of gold are virtually identical. The vertical lines mark tops in the Canadian dollar over the past ten years, and often align with precise tops on the gold chart.

    (click to enlarge)

    Both the Canadian dollar and gold have been producing falling tops since 2011.

    Many analysts are saying the bottom for gold is in, but if we consider the recent action of the Canadian Dollar, caution should be considered.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Tactical Technician's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.