Morning Report

The Dollar versus Loonie pair declined, as expected last Friday to stop at the pivot support – previously breached key resistance – currently at 1.0715. The bullish signs seen on the stochastic indicator are limiting any declines making us expect slight consolidation to gather enough bearish momentum to decline today; targeting the breach of 1.0715 and 1.0675, to open the way on the short term towards 1.0400 and 1.0000 respectively. This decline is valid as far as 1.0950 remains intact.

The trading range for today is among the key support at 1.0400 and the key resistance at 1.1040

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 1.0600 and stop loss above 1.0800 might be appropriate.