The pattern shown offers not only a logical target for an interim low, but three possible trades for now and the days ahead. For starters, there’s a ‘live’ long from 0.7611, a p2 pivot that very precisely foretold Sunday night’s bounce. One could also short a breach of that support if the futures rally back up to it; or bottom-fish D=0.7557. There are enough direct-hit confirmations here to suggest that that last number is likely to provide a precisely tradable bounce if it is reached. One more note: A much larger pattern that goes back to a high at 0.9277 made on 7/14/14 says the loonie could eventually fall to as low as 0.6875 before the bear market has run its course. Interestingly, the futures have been hanging on for dear life at the 0.7625 midpoint pivot of the same pattern (where B=0.7777 on 3/18/15 and C= 0.8375 on 5/14/15).
