NFTRH Update – Canada Dollar, Commodities & Precious Metals

We have been noting the Canadian dollar along with several other currencies in NFTRH reports.  The Aussie had broken down from support but Canada had clung to support despite a bearish looking pattern.  This week it is in danger of losing that support.

cdw

This is a simple update noting a loss of very clear support (if the breakdown holds) of a ‘commodity’ currency.  As such, it might be considered a negative divergence to the prospects of a commodity rebound, including Palladium, REE’s and Uranium, which we have discussed recently and I have personally taken some positions in.  I for one plan to watch these items closely with respect to my own holdings.  If the commodity sector weakens further (CCI 500 is key) in line with the Aussie and Canada dollars, I’ll have no problem exiting any year end speculations.

As for the precious metals, today they are bouncing  but are a long way away from doing anything that proves a bullish case.  Could this be THE rebound?  Why sure.  Could it be a whipsaw after HUI lost support?  Yes.

hui

The June low of 206 remains a key here.  People can speculate if they wish, but HUI is in breakdown mode, while gold never made a lower low.  So who’s right, Huey or the Barbarous relic?

Buffeted by some successful trading lately (finally) I am able to be patient and sit back.  HUI 206+ is not so much higher that I can’t wait.  Payrolls are out on Friday.  The Fed is upcoming.  My advice would be to remain steady.  If the precious metals start making technical signals, we will note them.  The first would be a taking of 206, and holding it.  After that the 50 day moving averages, which reside way up in the 220’s.  So you can see, there would be a lot of work to do.

My preference remains for a washout to end the whipsaws.  But then again, the market doesn’t seem to care about my wishes.