Morning Report

The Dollar versus Loonie pair couldn't extend gains past the 1.0715 key support resulting in a rebound to the upside, as it may be forming the second top; seen last Thursday around 1.0880, making us believe a bearish technical pattern is under construction supported by bullish signs appearing on stochastic. The bigger picture supports the decline on the short term, which requires a successful breach on the four hour charts of the above mentioned key support. The decline remains as far as 1.0960 is intact.

The trading range for today is among the key support at 1.0565 and the key resistance at 1.1100

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 1.0880 to 1.0715 and stop loss above 1.0960 might be appropriate.