Triangle Points to Loonie Decline, BofA Says: Technical Analysis
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Trading patterns show Canada’s dollar is poised to drop as much as five percent in two weeks against the greenback after staying “remarkably stable” during the recent market turmoil, Bank of America Merrill Lynch said.
The Canadian currency may break from its “contracting triangle” pattern to as low as C$1.0389 versus the U.S. dollar, from the 98.74-cent closing price yesterday, MacNeil Curry, head of foreign exchange technical strategy at Bank of America, wrote in a note to clients today. Such a move would represent a loss of about 5 percent.