Morning Report

The main support level 1.0605 - previously breached resistance level that turned into support - showed a strong stance against the dollar versus loonie pair's continuous attempts at moving to the downside. However, through the image above, the candlestick close continued above this level, but at the same below the neckline for the bearish technical pattern that appeared yesterday at 1.0665. We expect a bearish trend for today that will get pressured by the breached neckline, in addition to the 200 MA. Thus, we can expect the retest of 1.0665 and then heading towards breaching the main support to target 1.0455 initially.

The trading range for today is among the key support at 1.0360 and the key resistance at 1.0835.

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 at 1.0665 and targeting 1.0535 and stop loss above 1.0750, might be appropriate