The Dollar versus Loonie pair surged yesterday opposing expectations to breach the key resistance, seen in the image above,to form a bullish technical patter with a neckline at 1.0850. Momentum indicators are providing negative signs, which may result in the retest of the above mentioned level, before confirming the short term uptrend. From here, we expect the pair to incline on the short term targeting 1.1045 and 1.1120 respectively as far as 1.0850 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 1.1120
The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0300
|Recommendation||Based on the charts and explanations above, our opinion is buying the pair from 1.0850 to1.0985 and stop loss below 1.0765 might be appropriate.|