Has The Canadian Dollar Hit Bottom?

Canadian Dollar futures are fast approaching levels not seen since May of last year, when they traded at a low of 0.9568 against the US Dollar.  The sharp downtrend on the daily charts which began in January has experienced two retracement rallies (the first to the 50-EMA), and as of February 18th the currency finally breached support levels at 0.9910 after two failed attempts in January which has put it on track to retest May 2012's levels.

Canadian Dollar futures breaching support on February 18.

While I do expect the current push to continue, I do not expect the CAD to drop much lower than 0.9565.  Regardless, we can expect yet another retracement rally to the 20-EMA in the coming weeks for those of you bold enough to take a high probability counter-trend position.  Expect the currency to appreciate to .9800 within two weeks, barring any major reports.

Disclosure: I am short Canadian Dollar futures. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational and recreational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research. The information and data is believed to be accurate, but no guarantees or representations are made.