By: DailyForex.com
The Loonie has been steadily shrinking in value against the US Dollar since hitting a 6 month high in April. The pair finally broke resistance at 1.003 on March 15th and climbed as high as 1.0311 last week. Now we see the Loonie powering up to possible make a comeback. In order to do this however, it will need to break the low set yesterday at 1.02226 and most importantly, the support level of 1.0191 which coincides with the 13 EMA and the 23.6% retracement level. The next hurdle will be the Monthly R2, a long standing support level at 1.0159. From an Intraday trading perspective, look for support at 1.02152 and 1.0205 and resistance at 1.0243, 1.0263 and the Monthly R3 at 1.0267. The pair, along with many others, is prime for a retracement and could see that happen this week. I am cautiously Bearish on this pair below 1.0220 but overall expect the pair to trade as high as 1.04 soon, possibly within the next few days if the retracement does not continue.
