Why the Dollar Is Ready to Dip: Pro
The edginess may not go away any time soon. But Camilla Sutton, chief currency strategist at Scotiabank, says some key props for the dollar are weakening.
Sutton points out in a note to clients that a variety of technical factors are "suggesting there is further USD/CAD downside ahead." The nine-day moving average for the pair is now below the 21-day moving average, she says, and the MACD, or moving average convergence/divergence "is in sell territory."
Want more evidence? Sutton says the RSI, or relative strength index, is below 50. That indicator can be used to indicate trend formation, and a level below 50 suggests a possible downtrend ahead.
Be careful out there.
Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.
Learn more: The essential vocabulary for currency trading is on Key Terms Dictionary. Top currency strategies are broken down for you in Currency Class.
Talk back: Tell us what you want to hear about - email us at firstname.lastname@example.org.