By: Colin Jessup
Last week I wrote about the Loonie and its struggle to break through 1.025...well we have now indeed accomplished this with a Bullish Power candle forming on today's charts spanning 150+ pips. Price could now be heading for a re-test of the 1.0600 level but I expect that we will see a pull back to the 1.025 level first. So far, all indications from the Asian session are pointing towards a possible Bullish push again tomorrow. There is strong resistance at the same level as the daily close between 1.0400 and 1.0500. Intra-day Support will be at the previous resistance level of 1.025 and 1.035 with longer term support at 1.01 & 1.005. On the longer time frames, we see allot of 'Traffic' to the left on this chart between 1.025 and 1.097 so the Bulls certainly have their work cut out for them if they are going to take this pair higher. Its quite possible that we will try to re-test the previous zone at 1.06 before falling again and could see the Bears pick up some steam to re-test 0.9450 in the new year.
Happy Trading!
