By: Colin Jessup
The Loonie continued to take back some of its losses against its Yankee counterpart to the south last week. The weekly charts hows the progress crystal clear with a bearish power bar spanning .2957 pips...or almost 3 cents. This is attributed, at least in part, to higher numbers for housing starts, only a slight increase in the trade balance deficit, and of course better oil prices. Look for price to possibly pull back to the 1.0175 resistance level before taking another stab at par. We will find some support at 1.0031, a 50% Fibo level and then 0.9850 once we fall below parity. Should the inflation data or the BOC Business Outlook numbers not be favourable, look for the pair to turn bullish with resistance at the previously mentioned 1.0175 level and the1.0330 level beyond that.
Happy Trading!
