The dollar versus loonie pair declined yesterday after it was able to breach pivotal support at 1.0770 - neckline level for the bearish technical pattern -, meanwhile the support level for the ascending channel 1.0710 halted the pair from moving to the downside and stabilized trading around the retested breach. We still see that the expected direction is bearish over an intraday basis, especially with the consistent close below 1.0770 and continuing bearish pressure of the pair. Thus, our next target is the breach of 1.0710, since it will open a way to reach the main support 1.0635, where it holds the key to the previous bearish reversal. The expected downside move for today will prevail if trading remains below 1.0875.
The trading range for today is among the key support at 1.0430 and the key resistance at 1.0990.
The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair at 1.0770 and targeting 1.0635 and stop loss above 1.0875, might be appropriate|