Chart of the Day: Loonie Breakout

No, not a “loony” crazy breakout, a breakout in the Canadian dollar (also called the loonie!) The chart above is of the USD/CAD, so up on this chart is down for the CAD. (Chicago currency futures will be the inverse of this chart.) After a long consolidation near highs, the Channel system we use in our published research triggered an entry into this breakout in yesterday’s trading. Though short term currency movements have featured a lot of chop and slop and generally poor followthrough for the past few months, watch the CAD for a potential trend in the first part of 2014.


Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.

This Post Has 3 Comments

  1. Indeed

    With all the corporate US$ sellers in Canada, this will go right back to 1.0650 in no time. Look what happened in Spring 2013.

    1. Adam Grimes

      Maybe, maybe not, but thank you for the illustration–that is exactly the kind of “certainty” and bias that I work very hard to encourage people *not* to have. It can be extremely counterproductive to an investment process and the reality is no one knows what will happen in the future… and the good news is we don’t have to know to make money.

      1. Shane

        Looking at the USDCAD chart right now shows that what you encourage people not to have… bang on. Hope the poster above wasn’t shorting that break.

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