GoLearnForex.net's  Instablog

USD/CAD:

Since November 6^th, amongst the G-10 the CAD has gained more than any other currency versus the greenback.  The CAD has gained 2.71% through November 11^th.  We will present 2 reasons for this move.  The Canadian Dollar lost the most amongst the G-10 in the weeks prior to November 6^th.  It began with the BOC cautioning the markets about its remaining tolerance of a strong Canadian Dollar.  That was followed by a couple of poorer than expected economic releases.

The Dollar during that period of time strengthened as well when risk aversion was back.  Doing a straight current price comparison most of the G-7 has since returned to their respective levels prior to the Dollars run.  The only currency that did not retrace most its losses was the CAD. Once the other pairs abutted their support and resistance levels they began to consolidate.  The Canadian Dollar still had further room to appreciate versus it prior loss and it has.

The second reason that we alluded to earlier can be seen by the formation of a Descending Triangle.  Trend is clearly still favoring the Canadian Dollar. The bottom line of the triangle represents short term S&R. On the top line, the slope of the hypotenuse, represent the trend.  As price trades with the trend line towards S&R we anticipate a breakout to occur.  You can see that we have just broken below short term S&R, thereby advancing the CAD even further.