Indeed, the Canadian dollar worked its way lower throughout 2013 as oil's price deteriorated, as well. Then, in this first full week of 2014 trading, a pair of very bearish developments struck both the Loonie and oil charts. Oil, as described in the Member Letter, has formed a failed daily cycle. A failed daily cycle implies a weekly cycle decline, and so oil sports a bearish outlook going out several months.
Not coincidentally, the Loonie followed oil's breakdown by busting major support.
If the interpretation of our oil cycles is accurate, the Canadian dollar is destined for a date with 85c, perhaps even lower.