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Market View

Loonie is testing 50% Fibonacci level

Friday, October 19, 2018 11:52 AM GMT

Yesterday, US Claims fell more than expected (Forecast: 212K, Actual: 210K). Today’s agenda includes major economic news, such as US Existing Home Sales (Previous: 5.34M, Forecast: 5.30M) and FOMC Member Bostic speech. On the other side, all ears are to the ground for BoC Consumer Price Index Core (Previous: 1.7%, Forecast: 1.8%) and Canadian Retail Sales (Previous: 0.3%, Forecast: 0.3%).

Looking at the weekly technical aspect, Loonie is heading to the trendline (T3), after testing the trendline (T1). Trendline (T3) acts as a tested resistance and the pair may retrace back to trendline (T2). Additionally to this scenario, RSI setup may indicate a continuation of the bearish last months’ momentum.


Heading to the daily timeframe, the pair hit the 50% Fibonacci resistance level, indicating a potential reversal.


On the other hand, a breakout above the trendline (T3) points out a possible invalidation of the setup.

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. 

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