Loonie Revisited

Good Afternoon Dynamic Traders,

Hope you all had an outstanding weekend.

There has been some notable movement in the market in the latter half of today.

Below is the Loonie chart of the daily and 240 timeframes. The consolidation has been continuing for some time now and a breakout has been long awaited. Note that the longer the consolidation period the larger the breakout.

Price on the Loonie chart below has arrived at the familiar trendline support again which, it has to date found it difficult to break below. As with everything in the markets it's not guaranteed but it is possible that it is going to try to test this support and possibly break through. MACD is showing convergence and price is in close proximity to the figure.














In addition to the above, the 240 timeframe shows additional detail such as trendline resistance, support around 1.2200 and MACD convergence. It is possible that price could do what it has been doing for a while - bounce back up. However, price has been creating lower highs and therefore it will find a place on the watchlist in case of a break down.















Good Trading!
Bijal Shah