Morning Report

The Dollar versus Loonie pair gradually declined yesterday after reaching the resistance level at 1.0545, affected by the bearish signs seen on the stochastic indicator. We still hold onto our scenario for a decline as mentioned in yesterday's midday report to reach 1.0380, which represents a possible neckline for a bearish technical pattern we expect to be breached to open the way towards 1.0200. The minor support at 1.0325 may push the pair towards retesting the broken neckline before reversing back to the downside. The decline remains as far as 10.535 is intact on the four hour charts.

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 1.0490 to 1.0325 and stop loss above 1.0580 might be appropriate.