More Downside for The Canadian Dollar?

The September Canadian futures are in a down trend both on the weekly and daily charts. Recently the Canadian dollar has fallen dramatically and is now consolidating in the vicinity of 0.95. If you refer to the attached weekly chart, you will notice that this level was previously acting as support back in Nov 2012, Oct 2012 as well as Aug 2010. This is a significant support level and if this level is breached, there is potentially significant downside.

The daily candlesticks have been exhibiting indecision at this level and so far, the price action points to more downside than upside pressure.

Aggressive bearish traders will be looking to sell calls or establish put debit spreads now while more conservative bearish traders may want to see a break in the support before acting.







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