Morning Report

The Dollar versus Loonie pair slumped yesterday to reach the first target at 1.0575 representing the 61.8% correction. We expect slight consolidation with a slight incline due to the oversold signs appearing on momentum indicators before gathering enough bearish momentum to pressure the pair to breach the 1.0575 level and head towards 1.0400. This decline remains valid as far as 1.0730 is intact.

The trading range for today is among the key support at 1.0400 and the key resistance at 1.0820

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 1.0575 to 1.0460 and stop loss above 1.0630 might be appropriate.