Morning Report

The Dollar versus Loonie pair neared the key support at 1.0715 and rebounded to the upside in an attempt to retest the previously breached minor support at 1.0785. We believe this incline is only a correction and we wait for the pair to to reverse to the downside on the intraday basis to breach 1.0715, which is currently a neckline for a bearish technical pattern. A breakout of this level will open the way towards 1.0300; yet note that 1.0915 must remain intact for the intraday trend to remain to the downside, whereas 1.1050 should be intact on the short term.

The trading range for today is among the key support at 1.0565 and the key resistance at 1.1320

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0300

RecommendationBased on the charts and explanations above, our opinion is selling the pair with the breach of 1.0715 to 1.0565 and stop loss above 1.0785 might be appropriate.