Loonie approaching crucial first target … watch Oil’s reaction to gauge

Crude Oil and the Loonie are pretty correlated …

Crude put in some strong thrust up but the Loonie keeps going lower against the dollar … so, let’s play the “if – then” game ..

IF Crude has put in a tradable bottom THEN the Loonie should not be far behind.

Below is a long term chart of the Loonie since it started the float against the USD since 1972.

  • note the long term trend line that has rejected price action via the polarity principle. (purple dashed squares)
  • note the long term measured move targets. (blue and orange dashed lines)
  • note the PATTERN completing a little higher at 1.3425-1.3465.
    • that’s the first major target on the Loonie vs USD.
  • Over the coming days – WATCH CRUDE and particularly the intraday pattern shown below the Long Term Loonie chart ..

as a Spot FX trader, I’m not going to touch the Loonie Long until crude has proven to me it’s put in a bottom ..additionally, let’s keep an eye on the Oil Services Index.

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