Back on September 17, 2016 I wrote this about the Canadian Dollar:
Honestly I hate the idea so much I think the trade will probably work.
At the time the the Loonie was trading at about $0.76 US. On January 25, 2017 I suggested
Both measures have the Loonie undervalued against the US Dollar by about 10%. That gives a target of about 81-82 US cents
and posted the below chart that I created from data found at the St. Louis Fed FRED
With the recent rally in the CAD getting close to $0.80 US, the Loonie has returned to its 2 period moving average.
There is a possibility that the CAD trades above the $.081-0.82 US target as it could overshoot to the upside, similar to how 73 was an overshoot to the downside, but there is not much room left in the trade.
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