LOONIE (CANADIAN DOLLAR INDEX) (CXY) DAILY TIMEFRAME SHORT

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.