Morning Report

The Dollar versus Loonie pair surged yesterday, after the interest rate decision to support the bullish technical pattern, seen in the image above, which took the pair near the key resistance at 1.0565 to complete the upside correction that we expected. The short term trend remains to the downside as far as 1.0565 is intact; therefore we expect the pair to reverse to the downside after reaching this resistance to target 1.0300 initially. The stochastic indicator supports our overview.

The trading range for today is among the key support at 1.0200 and the key resistance at 1.0670

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000

RecommendationBased on the charts and explanations above, our opinion is selling the pair from 1.0560 to 1.0435 and stop loss above 1.0625 might be appropriate.