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.