Thursday, March 7, 2013
Morning Market Analysis
The Canadian dollar is in the middle of a drop. The 6 month daily chart (top chart) shows that prices are at 6 month lows. They broke through support at the 98-99 level earlier this month, and have continued to move lower. On the 1 year daily chart (bottom chart) notice that the next level of support occurs at the 99-99.5 level. Notice also the declining MACD for the last 9 months.
On the daily junk bond ETF, notice that prices broke the long-term trend in February and since then the trend line support has become resistance.
Finally, consider that the IEF's monthly chart still shows the treasury market in a long-term rally.