Morning Report

The dollar versus loonie built its base on the new support level - bearish direction resistance previously breached and turned into support - gradually moving upwards within the ascending channel shown in the image above. The upside move halted near resistance levels within this channel, which comes inline with the bearish negative signs on momentum indicators; thus, making us expect an intraday bearish trend for today supported by a bearish technical pattern's formation nearly completed, where its neckline is at 1.0770 and then head towards the main support at 1.0645 in an attempt to breach it to the downside and resuming to the downside wave. Chances of achieving the bearish trend, expected for today, will remain intact if tradingholds below 1.0875.

The trading range for today is among the key support at 1.0430 and the key resistance at 1.0990.

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.