The Loonie is the nick name given to the Canadian Dollar, generally when someone refers to the Loonie they are referring to 1 Canadian Dollar or 1 CAD.
The Term Loonie comes from the fact that the Canadian dollar bares the symbol of the Loon bird which is common in Canada. The name is so well known that when the Canadian Government introduced the 2 dollar coin several decades ago it was immediately referred to as the Toonie.
The USD/CAD pair pierced the 0.9450 level, but on Friday bounced hard. It should be noted however, that the pair also gave a lot of ground up later in the day. The reaction was to weak inflation numbers out of Canada which effected the Loonie, that was tempered by extremely strong retail numbers. We think this pair will be moved by oil, and a sustained break above $100 would do that. The USD/CHF pair attempted to rally above the 0.83 level, but fell short again, and formed a shooting star on Friday, showing how weak this pair really is. With the debt ceiling talks stalling in America, this pair looks set to fall even further. Play video >>
The USD/CAD pair managed to break below the all-important 0.9450 level on Thursday, but bounced later in the day as support held. This sets up the market for a clear signal: If we break the bottom of Thursday's doji, we can continue to sell this pair. If we break the highs on Thursday, this just signals that we will get a better price from which to sell. We don't buy this pair as it is so bearish. The USD/CHF is a completely different story as it looks very weak, and has shown no qualms about making even lower lows in the past. This pair is a freight train southbound, and as such - we sell rallies and new lows. The 0.80 level is below, and it could present a bounce, but that should only be another chance to sell at higher prices. Play video >>
USD/JPY looks weak, but you can have it! We see that we are approaching areas that triggered intervention previously. USD/CAD looks weak as well, but the 0.9450 area looks like it is going to produce a bounce, which we are not willing to buy, but are willing to sell at higher levels. Play video >>
The USD/JPY pair rose as Japanese officials decided to verbally intervene in the market by stating the value of the Yen didn't reflect fundamentals. The USD/CAD got a bounce on Thursday. A wise trader would ignore it judging by the longer-term charts. Play video >>
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