Watch CAD For Strength On Triangle Breakout
Watch the Canadian dollar for strength if it breaks out of a triangle pattern on the Canadian Dollar Index chart (index against EUR, USD, GBP, AUD, CHF, JPY).
The Canadian dollar index has outperformed the Australian dollar and New Zealand dollar indexes over the last 1, 2, and 3 (shown) years.
On the flip side, a downside breakout of the triangle would indicate further weakness in the Canadian dollar, and likely in the AUD and NZD too since they tend to be positively correlated.
On a shorter-term basis, since about September the AUD has been stronger the CAD.
The Canadian dollar index has outperformed the Australian dollar and New Zealand dollar indexes over the last 1, 2, and 3 (shown) years.
On the flip side, a downside breakout of the triangle would indicate further weakness in the Canadian dollar, and likely in the AUD and NZD too since they tend to be positively correlated.
On a shorter-term basis, since about September the AUD has been stronger the CAD.
Cory Mitchell, CMT
Stock and forex trading insights at tradethatswing.com/
Stock and forex trading insights at tradethatswing.com/