The Loonies Breakout

Good morning forex traders.

The Loonie has had a breakout and reached the 1.0500 zone and finding some resistance there this morning. Although a possible pullback maybe possible, as dynamic traders this is not a good trade to enter into at this point as we do not have our confluence of events.

Yesterday the USDJPY has also broken out from the resistance level and we have been stopped out on our second position on this trade. Price reached just less than the figure and is at 109.41 at the time of writing.

We have rate decision and Trichet talking today so you may want to stand aside. Both the ECB and UK are expected to leave rates unchanged.

The falling oil prices is supporting the Dollar strength. Below is the weekly chart of the Dollar Index Futures. Notice the long downtrend and trendline resistance.


Weekly Dollar Index Futures Advanced Get chart.

Below is the daily crude oil chart. Notice the trendline break with divergence at the figure.


Daily light cride oil Advanced Get chart.



Above are today's daily pivot points.

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Good trading.

Forex Analyst
Javid Shaik