The dollar versus loonie rushed to the upside, building its base on the main support level - the breached resistance level that turned into support - despite that this ascend clearly does not have enough momentum to continue; thus, we expect trading to reverse to the downside, in an attempt to attack themain support level that starts from 1.0615 - which is the channel's support that resides with 38.2% Fibonacci correction - in an attempt to return to its previously bearish direction. The expected bearish trend which targets 1.0455 requires the four-hour closing below 1.0765
The trading range for today is among the key support at 1.0360 and the key resistance at 1.0870.
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 1.0710 and targeting 1.0615 and stop loss above 1.0780, might be appropriate|