In spite of lower than expected numbers from the Canadian housing markets and retail sales last week, the Loonie appears to be continuing to strengthen after breaking through .9900 and pulling back to the Monthly S1 at 0.9941. A deeper pullback might still be possible, as it only retraced to the 23.6% level but the Daily Chart 5&13 EMA's never crossed, suggesting that a bearish continuation is following through. The pair is sitting on the Weekly Pivot at 0.99036, but has closed below both EMA's on the daily chart and the pair is well below the 62 Day Moving Average suggesting further bearish momentum. Likely targets will be last weeks low at 0.98416, the Weekly S2 at 0.9797 and WS3 at 0.9753. Should the bullish momentum return, the key levels to breach will be the Monthly R1 at 0.9941 and 0.9965 before testing the 62 day EMA at 1.00295. Keep in mind that the USD Consumer Confidence numbers are being announced at 10AM EST later today and could give the USD a little boost, in which case the Loonie might lose some ground. I remain bearish on the Loonie.
