Loonie Pullback

Good Evening Dynamic Traders

Tonight let's take a look at the Loonie. As posted on 9 Oct, price gave us a BOB of the low. Some of you may be in this trade and initially would have seen some good profits as price continued south. However, in the last few days we've seen price bounce up for a breather and yesterday's bullish candle may have tested many a traders emotions. But the SM traders would most certainly expect price to retrace after a BOB - and surely what we can see is price simply retesting S as R. Price has nicely tagged a fib breather level which is also clustered with the S/R level - the figure is also in proximity . Of course we don't know what price will do next - will price use this R cluster as a springboard to continue down with the trend or will it resume to it's recent ranging nature?














What is the overall trend telling us? Take a look at Stochastics to help you. Overall, odds are in our favour for a continuation south, but let's see how price unfolds for the rest of the week. High impact news is due out on both currencies tomorrow, so we may see some volatility in price.

Please carry out your own your analysis.

Great trading to you all!
Sonia Molina