Thursday, July 10, 2008

This Currency Is About To Make A Move



Above is a weekly chart of the Canadian Dollar and below that is the ETF for Crude Oil. You'll notice that the Canadian dollar has been consolidating since January of this year which means many traders are losing interest in it. I on the other hand am paying very close attention to this currency because I think we'll see a large trending move take place in the very near future.

In the lower panel is the ETF for Crude Oil and you'll notice how the Canadian dollar and oil trend together in the same direction. What I find interesting is that oil has been exploding higher since January 2008 while the Canadian dollar has been going sideways during that same time period. If the Canadian dollar begins to breakout of this consolidation, I will be looking to get long as I feel the C-dollar will be pulled up by oil. If the breakout to the upside doesn't happen then I'll simply leave it alone.

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