I find it useful to look at the big picture from time to time. In technical analysis terms, that usually means inspection of weekly and/or monthly charts. However, I rarely get to see analysis of "ultra-high" timeframe charts, so I decided to make a couple of attempts of my own. Previously, I analysed long term charts of the Euro, the Yen, the Cable and the Swissie.
Today I'll have a look at yearly and quarterly Loonie charts that are covering the period from 1971 to 2015. While the yearly may be of some use for a quick overview of price action, the quarterly chart offers more detail and makes trends, ranges and patterns more easily observable. I will be focusing on the latter for my analysis.
Yearly Chart
Quarterly Chart
Broken Trendline
One of the first things that I noticed on the chart is the upward sloping channel that the pair traded in from 1971 to 2003. The channel bottom (trendline) was broken in 2004 and has been acting as a resistance since. It capped the pair in 2008 and 2009 and I expect it to continue to play that role, should the pair meet it in the future. The trendline is currently centered around 1.3750.
Fibonacci Retracements
I re…
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