Up or down for the Canadian dollar?

For many months, mainstream analysts have been predicting the Canadian dollar will go to par with the American greenback. Some are even predicting we’ll go above par. David Drozd, with Ag-Chieve in Manitoba has been taking a contrarian view. Drozd does technical analysis, graphing lines of support and lines of resistance and noting two-day reversals on pricing charts. I’m not a big believer in technical analysis, but Drozd has established a pretty good track record. After peaking at just under 98 cents on October 15, the Canadian dollar has weakened. Drozd notes that the value has recently been confined to a three cent trading range between 93 and 96 cents. He believes it’s going to move down to test 90 cents. If it breaks 90, the next target is 85. If Drozd is right, he’s going to garner a lot of attention. Based on his analysis, Drozd also believes the U.S. dollar index is ready to move up, while crude oil is vulnerable to a downward correction. Stay tuned. The Ag-Chieve website is www.ag-chieve.ca. I’m Kevin Hursh.