By: Colin Jessup
The Aussie/Loonie pair has broken a descending trend line that began by anchoring itself on July 08 of this year, at 87.74. After trading sideways for over a week between 78.07 and 79.58, it appears to be breaking to the upside with today's bullish candle closing above the decending trend line at 79.60. Price formed a flag of sorts with bullish overtones after a rapid move up from 72.03 to 80.26 over the past 2 weeks. That said, the bulls will need to break a major resistance zone, and close above it at 79.60 in order to continue their run north. Once done, we will see resistance again at the 81.00 and 82.49 above that. Should the bears fight back we should see support at 79.00, 78.08 and 77.00 give or take a few pips. Please note that the predominant trend is down, but the last few weeks have been mostly bullish.
Happy Trading!
