By: Colin Jessup
Yesterday I wrote about the Loonie's weekly chart, predicting it would pull back to the 1.0175 level, which it has and then some. This may be a pull-back, but considering traders aversion to holding European currencies right now, the Greenback is making gains and might continue to do so. The daily chart is hinting at a possible bullish continuation and the pair turned bullish today after gaining back 500+pips in the last 10 days from the Greenback. Price traded as low as 1.0043, where it possibly reacted to the 50% Fibo level at 1.003, before turning and closing 189 pips to the north at 1.0233. Price pushed through the resistance zone at 1.0175 like it wasn't even there to close above last Friday's high and the 38.2% Fibo level at 1.0178. We will have some resistance above at 1.025, 1.0275 and 1.0350 above. To the downside, we see resistance at the (now support) level of 1.0175, 1.0100 and 1.0031, which is again the 50% Fibo level. With the Greenback being considered a safe haven for those wishing to dump European currencies, it is likely that we will see more bullish price action on this pair.
