Morning Report

The 1.0655 level was able to halt further declines for the Loonie resulting in a rebound to the upside in correctional movements towards the 61.8% correction at 1.0775, taking the stochastic indicator into overbought areas, where our expectations are for a decline on the intraday basis targeting the breach of 1.0655 before heading towards 1.0000 as far as 1.0805 remains intact on the four hour charts.

The trading range for today is among the key support at 1.0425 and the key resistance at 1.0970

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 1.0775 to 1.0655 and stop loss above 1.0850 might be appropriate.