While I still see the Canadian dollar (loonie) in a major (long-term) downtrend after the loonie posted a new 4-month low during December of 0.77136, it’s secondary (intermediate-term) trend may have tried to turn up last week. Initial secondary resistance is at the previous 4-week high of 0.79303 with the loonie reaching 0.79215 before closing last week at 0.79082. Things get more interesting when we take the daily chart into account as the minor (short-term) uptrend looks to be nearing a peak. Daily stochastics have already climbed above the overbought level of 80% putting this momentum indicator in position for a bearish crossover. Initial major resistance is at the previous 4-month high of 0.81366.
