The loonie stays range bound between the 1.0590 level as support and the 1.0726 as resistance. Each of these levels has provided traders with opportunities to enter in this currency. As we can see on the chart below, courtesy of Masterforex-V World Academy, the range is more than 130 pips, suggesting that if you had sold or went short at the top resistance of the 1.0726 level or long (buy) at the bottom support of the 1.0590 level, you could’ve enjoyed the profits of the swings from each of these levels.
Today, we had a very good bounce from the 1.0590 level to the upside, supported by the 200 period Exponential Moving Average (blue line) on the 4 hour chart. Usually, these visits to the 200 EMA, especially on the 4 hour charts, provide us with excellent opportunities to enter the market.
At the moment, the bounce has already moved more than 50 pips, but it is encountering some type of minor resistance around the current levels of 1.0655. But we must be attentive to a possible visit of the top of the range, because we may find another opportunity to go short on the pair at that area.
Today, we had a very good bounce from the 1.0590 level to the upside, supported by the 200 period Exponential Moving Average (blue line) on the 4 hour chart. Usually, these visits to the 200 EMA, especially on the 4 hour charts, provide us with excellent opportunities to enter the market.
At the moment, the bounce has already moved more than 50 pips, but it is encountering some type of minor resistance around the current levels of 1.0655. But we must be attentive to a possible visit of the top of the range, because we may find another opportunity to go short on the pair at that area.
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