The Loonie index is currently moving in a downtrend, as shown by the lower highs and lower lows on the daily timeframe
. This is also in sync with the commodities
markets ( crude oil
, well and even gold
), which have been experiencing bear pressure lately. It is no secret that currencies like the Loonie ( Canadian dollar
), Aussie (Australian dollar) and the Kiwi (New Zealand dollar) are driven by commodities
. The outlook of the commodities
market can give us a bias towards these currencies especially if their movements are in harmony.
If the index can break above the 75 price level, then we could see a potential bull run. For now, our bias remains bearish
with potential targets around the 72 price level.