Some observers have warned of a bubbling real estate sector, and traders have bet against Canadian real estate through shorting Canadian banks. In the meantime, the national median home price continues to climb to all-time highs. We will have to monitor how the government plans to engineer a soft landing for the real estate market in an attempt to mitigate a potential fallout. [Tepid Response by Canada ETFs to Surprise Rate Cut]
Turning to the 3-month continuation chart, we see a general pattern of lower lows and lower highs over the past 3 months. The Canadian Dollar is far below the 50-day Simple Moving Average (SMA), while the 20-day SMA is providing a strong resistance line. Many of the recent candlesticks show a fairly wide daily trading range but a final close near the day’s open. 14 day RSI is a neutral 55.52,” notes OptionsExpress.
CurrencyShares Canadian Dollar