The Loonie has been selling off for the past months as economic growth has slowed , and recent broke to new lows on ideas that US interest rate policy may not be as loose as traders had been pricing in. For the past weeks the March Futures have been finding support around the 9800 level, and it might be time to start looking at the long side.
I have two reasons to be considering the long side: 1. MACD appears to be bottoming, although it’s too early for this to be a definite turn, and 2. Prices are in a position to break above the down trendline of the past weeks, with trendline resistance coming in around 9875 for Monday. Look for a pop above the trendline to see upside follow through, with Monday’s high around 1.000 as the initial upside objective.
