By: Colin Jessup
The Loonie is stuck between a rock & a hard place...so to speak. Price has tried to push through a weekly resistance zone at 1.025 but closed the day at 1.024, plus the Moving Average is squeezing it from below at 1.008. Having traded for weeks between these two zones could signal building bias to break higher, but the unsuccessful attempt today to break through weekly resistance could signal a pull back to the Moving Average or lower. From a Daily Time-Frame point of view, we have had several Bullish Power candles (followed by weaker Bearish candles) over the past 2 weeks but all were stopped short of this pesky Resistance zone. I would expect support at 1.016 and 1.008 if price turns Bearish, with resistance zones at 1.029 & 1.036 above if the Bulls successfully break 1.025.
