FX Week

Candollar ready to fly

The US dollar has been within a rising trend versus the Canadian dollar from 1991 until the present. This long-term uptrend has encompassed a move from a low of 1.1193 in November 1991 to the recent all-time high of 1.6194, established in January 2002. Interestingly, the all-time high at 1.6194 completed a five-wave Elliott Wave sequence that indicates we are in a longer-term topping pattern in US$/C$. This view is reinforced by the fact that we are currently within a five-year rising wedge