Chart produced using Advanced GET End-of-Day

The Australian dollar and Canadian dollar tend to be long-term emotionally sensitive currencies. Investors either love them or hate them.

I can well remember the scramble of hedge funds and investment managers to buy the Australian dollar above .90 cents in 1995. It was the sexy high yield place to be. But at .52 cents no one cares about it now.

Similarly, and further back in time, what a rush there was to own the high-yielding Canadian dollar near 1.12 CAD/USD in late 1991. Recently the Canadian dollar has fallen as low as 1.6050 CAD/USD, and everyone shuns it.

But just travel to Canada, and restaurant menus and hotel costs will tell you that the Canadian dollar is a bargain. Any pickup in commodity prices would also tend to support both the Australian dollar and Canadian dollar, and how much worse can the commodity markets get from here?

Technically, we also sense a potentially complete Fibonacci rhythm in the weekly chart above, with some divergence on its 5-35 week oscillator.

Is the wind shifting once again to be at the back of the Canadian dollar? We think so, and like the chart pattern we see, with stops set above recent highs, and an initial target zone near 1.54.

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