Morning Report

The Dollar versus Loonie pair returned to trade below the key resistance for the downside channel as trading was narrow within 1.0655 and 1.0680 as we see in the above image. The consecutive four hour closings below 1.0680 make us expect the pair is to decline on the intraday basis targeting 1.0540 and 1.0475 respectively after breaching 1.0655 yet the positive signs appearing on the stochastic may result in the further narrow trading until the pair gathers the momentum needed to decline. The decline remains as far as 1.0680 is intact on the four hour charts.

The trading range for today is among the key support at 1.0410 and the key resistance at 1.0965

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

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RecommendationBased on the charts and explanations above, our opinion is selling the pair with the breach of 1.0655 to 1.0540 and stop loss above 1.0735 might be appropriate.