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Canadian Dollar on the Verge of a Breakout

|Includes: CurrencyShares Canadian Dollar Trust ETF (FXC)
scott

Scott Pluschau is a Contributing Editor to the ETF Digest.

 
 
Scott was a financial advisor with Citi. His technical analysis report on the Nasdaq Composite Index was featured by Dr. Marc Faber in his June 1, 2011 Gloom, Boom & Doom report. Scott earned his degree in Accounting and Taxation from Pace University. He lives on Long Island with his wife Ilona, daughter Olivia and son Henry.


 

The United States deficits and debts are a big concern for many and while Canada is the United States largest trading partner and neighbor, it is a commodity exporting country and that is the reason it always has me paying attention.

I’m looking for a reason to diversify US Dollars. One way is to invest in real assets, such as exchanging dollars for precious metals, but another way would be to invest in those countries’ currencies that produce real assets. The Canadian Dollar is a heavily traded and liquid currency. Let’s look at the chart below in symbol FXC, the Canadian Dollar Exchange Traded Fund.