Loonies flying north for the … winter?

USD/CAD — 1.1235

With the volatility of the USD currency, the loonies are gaining spread.  Canadians tend to fly south to the warm weather for the holidays.  The bearish trend on the USD/CAD means good news for vacationing Canucks.   Unfortunately, so much of the Canadian economy is based on the USD that it isn’t necessarily a good sign for the Canadian economy itself.  Strong Canadian dollar doesn’t mean good news for the exports from Canada.   Nevertheless, it does mean an opportunity for investors.   Look for the bearish position here:

The above hourly chart shows clearly bearish pattern beginning yesterday at 14:00.  The continues through to current trade of 1.1235 approximately. Support for the bearish pattern is at around 1.127.  Resistance is around 1.121. Looking at the minute chart we see a large spread of movement between 1.122 and 1.125.  Investors are reminded to use caution in the position and potential for quick profit-taking trades.