U.S. Dollar Likely to Gain Versus Loonie: Technical Analysis

Aug. 26 (Bloomberg) -- The U.S. dollar will likely extend its two-day advance against its Canadian counterpart after posting a “bullish daily reversal” yesterday, according to Citigroup Inc. A rally in the greenback to C$1.1126 against the Canadian dollar, nicknamed the loonie, “is expected,” technical analysts Tom Fitzpatrick in New York and Shyam Devani in London wrote in a note to clients today. “A close above there would be quite a bullish development over an extended period.” Canada’s currency dropped 1 percent to C$1.0974 per U.S. dollar at 4:43 p.m. in Toronto, after sliding 1 percent yesterday, its first loss in six days. One Canadian dollar buys 91.12 U.S. cents. A move to C$1.1126 would represent a 1.4 percent rise in the value of the U.S. dollar. (more)