CLIFF NOTES: back on May 23, 2014 we generated a zone of POTENTIAL support. If you are a equity trader, then you might not think this zone is that big….folks, 150-175 pips is a VERY wide range. And, as you can see, in this case of course it decided to go all the way to the bottom of the box…ain’t that they way the cookie crumbles? So, here’s the post and the work that went into this zone: http://bartscharts.com/2014/05/23/loonie-vs-the-usd-and-how-to-build-a-case-for-managing-risk/
Now, here’s the multi-time frame work that is now building a “first case” for entry on the USD vs the Loonie. Cross correlation the Oil Services Index and Crude also gives “some” (not a lot) of confirmation that this “corrective move” is over. Also, take a look back to the left … we broke thru some major resistance a couple years ago so it “SHOULD” act as support. That, along w/ patterns on top of this polarity makes a case for entry seem reasonable.