After declining nearly 30% into the lows of 2016, the Canadian Dollar has been attempting to change its long-term trend as it has created a series of higher lows inside of rising channel (2).
Over the past few months, rising support has been tested several times. Currently, it is attempting to break above falling resistance at (3), inside of the rising channel (2).
The Canadian Dollar is highly correlated with Commodities. What it does at (3) is very important for this currency and should send an important message to the commodities space. Gold, Silver, and Miner’s would love to see it breakout at (3)!
The iShares MSCI Canada Index ETF (EWC) was unchanged in premarket trading Wednesday. Year-to-date, EWC has declined -2.80%, versus a 9.39% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.