Given the importance of the Canadian Dollar to our industry I wanted to provide a quick recap of history in case we are in for a repeat.
October 1, 2008 saw the Can$ open at $.9432 with things about to get real. At the peak of the selling, the low for the month of October was $.7686, down $.1746.
If this is as bad as 2008, and in many ways it could end up much worse, from a starting point of $.7438 to begin March, a similar move would leave us at $.5692.
Given the Australian Dollar hit $.5510 last week after starting the year at $.7024, it is not out of the question (for us to dip below $.60).
This is not a forecast for such a move, merely a heads up.
That said, the monthly continuation chart has had a signal that I follow suggesting an initial target of $.5920 with a secondary target at $.54 (triggered in November 2017). I didn't put much weight in it given the magnitude of the move (other than to have a weak bias to the Can$ in the short term). Given today's realities, who knows?
October 1, 2008 saw the Can$ open at $.9432 with things about to get real. At the peak of the selling, the low for the month of October was $.7686, down $.1746.
If this is as bad as 2008, and in many ways it could end up much worse, from a starting point of $.7438 to begin March, a similar move would leave us at $.5692.
Given the Australian Dollar hit $.5510 last week after starting the year at $.7024, it is not out of the question (for us to dip below $.60).
This is not a forecast for such a move, merely a heads up.
That said, the monthly continuation chart has had a signal that I follow suggesting an initial target of $.5920 with a secondary target at $.54 (triggered in November 2017). I didn't put much weight in it given the magnitude of the move (other than to have a weak bias to the Can$ in the short term). Given today's realities, who knows?
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