Morning Report

The Dollar versus Loonie pair rebounded sharply, as it was positively pressured by momentum indicators to close above the key support at 1.0715, where we expect the pair is to continue trading within the downside channel. The stochastic indicator is entering an overbought area, as the pair reaches the 1.0800 resistance, which makes us expect a decline on the intraday basis to breach 1.0715 and target 1.0600. The decline remains as far as 1.0925 is intact.

The trading range for today is among the key support at 1.0565 and the key resistance at 1.1035

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 from 1.0800 to 1.0685 and stop loss above 1.0880 might be appropriate.