The Loonie (CAD) weakened the most in more than a month against the Greenbacks as heightened concern about Europe’s debt woes and conflict between North and South Korea increased demand for assets considered havens.
Loonie was among four of the 16 most-traded currencies that performed the worst against Greenbacks on 27th November 2010. Loonie and its commodity-linked peers in Australia and New Zealand also dropped as resource prices declined on speculation that the Chinese will increase borrowing costs further.
From the attached chart of USD/CAD (Weekly) as of 27th Nov 2010 at 4:40am(Singapore Time). After the resistance at the Triple Top, there was a strong downside movements but it appears to be slowing down with current support around 0.9950 area. If we are looking on the upside movements of if there is any, we can look at Fibo 23.6% for 1st resistance followed by Fibo 38.2%. Any higher than this, we would need more confirmation and market commitment because frankly, I still do not trust the Greenbacks just yet.
Loonie was among four of the 16 most-traded currencies that performed the worst against Greenbacks on 27th November 2010. Loonie and its commodity-linked peers in Australia and New Zealand also dropped as resource prices declined on speculation that the Chinese will increase borrowing costs further.
From the attached chart of USD/CAD (Weekly) as of 27th Nov 2010 at 4:40am(Singapore Time). After the resistance at the Triple Top, there was a strong downside movements but it appears to be slowing down with current support around 0.9950 area. If we are looking on the upside movements of if there is any, we can look at Fibo 23.6% for 1st resistance followed by Fibo 38.2%. Any higher than this, we would need more confirmation and market commitment because frankly, I still do not trust the Greenbacks just yet.
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