Morning Report

The Dollar versus Loonie pair was able to breach the first pivot support (currently at 1.0705), where it is fluctuating between 1.0675 and 1.0705 in an attempt to gather bearish momentum to support the expected decline pointed out yesterday. As a result, the bearish technical pattern will be completed, where we expect the pair to breach the neckline at 1.0675; therefore we believe the pair is to extend declines on the intraday to support the short term decline with targets at 1.0400, before heading towards 1.0000. The decline remains as far as 1.0850 is 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 1.0675 to 1.0575 and stop loss above 1.0740 might be appropriate.