What way is the Loonie going?

Good Morning Dynamic Traders

Yesterday we saw price fall down to the support line, which leaves us wondering what will happen now. Yesterday I asked if you would be triggered into a trade soon. If you are thinking of trading this currency what position will you take? Long or short?

In the day below you see that the MACD is showing convergence, this would normally indicate that price is getting ready to reverse. Personally this convergence is not enough to decide what price might do next and it isn’t enough for me to enter a trade. What does the 4 hour chart show?














Below in the 4 hour chart you will see the same convergence that we saw from the day chart, this also appears on the hour chart as well. We now have a confluence of the same event, but this does strengthen the possibility that price could reverse it’s now a case of when it might happen.














I was all set to write about what things we should be looking for to help us with working out when price might reverse if it does, or if price goes the other way what should we look for then!! Instead I have decided to wait and see if the Loonie shows us today, if it decides which direction it wants to go in.
To give you a clue, look out for your candlesticks, chart patterns and what are your studies saying i.e. RSI, MACD, Stochastics and any other studies you like to use. Tomorrow I will go through what things we should be looking at.

Happy Trading

Richard Monnery