The Loonie has been losing its battle with the USA's Greenback all week after taking back some ground last week to the tune of 38.2%. The start of the trading week saw a roughly 40 pip bearish gap and then a 96 pip +/- move upwards in response. The pair then fell once again to the Daily S1 at 1.02500 and turned Bullish once again during yesterday's New York trading session only to return preference to the Bears once again in Asian trading. At time of writing, about 7AM London Time, the pair is trading at 1.02759 and forming a Bullish Pin Bar on the Daily Pivot at 1.02750 suggesting that another Bullish run is in the works. However, when you add all of this data together on a daily chart, we see that there is more of a Bearish Ax forming indicating that prices might actually fall and in turn show the feathered themed currency from Canada gaining against the USD once again. If price falls, look for Key Support at 1.0214 and 1.01745 with the Weekly S1 sitting at 1.0135. To the upside, the Bulls will be meeting resistance at the Weekly Pivot of 1.0290 and the Daily R1 at 1.03100. The Weekly R1 has printed parallel to the Daily R3 at 1.0371 and as such could be a major hurdle for the Bulls to overcome in order to push prices higher.
Happy Trading!