ZuluTrade Blog

Market View

A potential reversal for Loonie

Monday, October 8, 2018 9:44 AM GMT

Friday’s NonFarm Payrolls report was dissatisfactory. The American economy gained only 134,000 positions in September, while Traders expected 185,000 positions. However, the unemployment rate declined to 49-years low of 3.7%. Also, traders focused on the major news from Canada, such as Unemployment Rate [Previous: 6%, Actual: 5.9%] and International Merchandise Trade [Previous: $-0.11B, Actual: $0.53B]. Today USA’s citizens enjoy Columbus Day and Canada’s citizens enjoy Thanksgiving Day.

Looking at the daily timeframe, Loonie is approaching the 50.0% Fibonacci resistance level as well as it is following the trendline (T1). Moreover, Stochastics is highly oversold which indicates a potential bearish setup.


Additionally, heading to H4 timeframe, RSI has been within oversold zone since the market’s opening and calls for correction.


Overall, the setup points out a potential reversal offering a bearish opportunity. On the other hand, if the oscillators remain overbought excessively, then it may indicate a bullish momentum strengthening.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.