The GBPUSD sports a short term inverse head and shoulders pattern. The EURUSD made an inside day. Both developments are evidence of a short term reversal…

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Forex Technicals: The Day Ahead, August 18

Our recent forex seasonality report made an argument for a substantial reversal in the Canadian dollar and Japanese Yen through the month of August, but…

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Forex Seasonality Update: We Forecast USDCAD Declines

At -79,438, the British Pound composite COT is the lowest since July 1999. Cable was in a long term downtrend at that point as well, but the extreme bearish…

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British Pound Speculative Shorts at Highest Since 1999

The EURUSD closed below 1.47 Friday and the pair has enjoyed a small bounce so far this week. While there is no confirmation of a Euro bottom, short term…

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Euro Countertrend Rally Possibly Underway to 1.52

More than 700 points after the USDCAD began its near non-stop rally, the pair seems to finally have run out of technical steam. In fact, the pair spent…

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Canadian Dollar May Secure Bullish Reversal With Data

The Australian dollar would fall as low as 0.8591 during the week, which ended seven consecutive days of falling, before it bounced higher. The 0.8600…

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Australian Dollar Headed For Yearly Low

The New Zealand dollar and Canadian dollar both rallied against the US dollar on Friday - despite broad declines in commodity prices - as the overbought…

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Canadian Dollar, New Zealand Dollar Surge Despite Drop In Commodities

The USD rallied overnight but evidence is mounting that a dollar weakness is around the corner.

Canadian Dollar Holding Own…Reversal Potential

USD/CAD Ratio: 1.25 Signal: Bearish

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Canadian Dollar Traders Perfectly Predict USDCAD Breakout, Pullback

Currently, there is a high reward / risk short USDCAD opportunity. The EURUSD remains in a range, but the recent rally is corrective. This corrective advance…

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Canadian Dollar High Reward to Risk Trade

Recent Japanese Yen and Canadian Dollar losses buck their longer-term seasonal trends, as both currencies tend to appreciate against the US dollar in the…

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USDJPY and USDCAD Defy Forex Seasonality; We Forecast Declines

The Canadian Dollar continues to lose its luster. Falling natural resource prices and the credit crunch have combined to exact a devastating blow on the Canadian economy, causing it to actually contract in the most recent month for which data is available. Now, the Central Bank is predicting that the economy will expand by only 1% in 2008. Most economists expect that Canadian Monetary Policy will soon lag US policy, especially if the Fed raises interest rates to combat inflation. Based on these developments, the consensus is that the Canadian Loonie is significantly overvalued, and will lose some of its value over the next few years, falling to a more sustainable level against the US Dollar. Bloomberg News reports:

The loonie will slide to C$1.05 by the end of December, and
to C$1.09 by the start of 2010, according to the median estimate
of 31 strategists surveyed by Bloomberg.

Read More: Loonie Loses Currency Wings as Canada Hurt by U.S.

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Analysts: Loonie to Fall

A countertrend Dollar decline should be underway towards EURUSD 1.5083, GBPUSD 1.5250, and USDJPY 107.90.

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Dollar Countertrend Decline Should Last a Few Days

USD/CAD Ratio: -1.19 Signal: Bullish

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Canadian Dollar Traders Perfectly Predict USDCAD Breakout

This week?s economic calendar is unlikely to offer much support to the beleaguered Kiwi dollar. Second-quarter Producer Prices will most probably tick…

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New Zealand Fundamentals Yield To US Dollar Sentiment