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Tuesday, December 16, 2014

Canada's TSX Index and Canadian Dollar Roller-Coaster Ride

I last wrote about Canada's TSX Index in my post of October 10th.

The 3-Year Daily chart below shows that, since then, price bounced shortly thereafter to re-test the bearish moving average Death-Cross formation, then plunged to re-test the October low around the 13,650 level. A break and hold below this level could send this index down to its next major support around 13,000, particularly if volumes continue to build, as they have, of late.

As of today (Tuesday), the TSX is bouncing on a diverging (positive) RSI signal, but a buy signal is not being confirmed, yet, by the MACD and Stochastics indicators. As well, until the RSI rises and holds above the 50.00 level, the buying may be short-lived.


The Weekly 'Hanging-Man' formation on the USD/CAD forex pair, to which I referred in the above-mentioned post, did not confirm. Instead, after whip-sawing for several weeks, price, eventually, continued to rise to a little above its next Fibonacci resistance level of 1.1665, as shown on the following Weekly chart. None of my indicators are suggesting a reversal of the uptrend yet; rather, a continuation is suggested.


We'll see whether these current levels represent any kind of major reversal point for both the TSX and USD/CAD, or whether more weakness lies ahead...until then, we may see some increased intraday volatile moves occur in a large trading range.