Morning Report

The dollar versus loonie was able to the breach the mentioned minor support level yesterday at 1.0600, where it descended and hit into the 50% Fibonacci correction level that met with main support 1.0560 - resistance level for the previously breached bearish direction -. Momentum indicators are pushing the pair to the upside, thus pressuring it to retest broken support levels at 1.0645 - previous ascending channel -. For today, we can expect an intraday bearish trend that will stabilize no the last level and target 1.0455 initially; however, it requires the four hours to remain below 1.0645 to maintain chances of its continuation.

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.

RecommendationBased on the charts and explanations above our opinion is selling the pair at 1.0645 and targeting 1.0535 and stop loss above 1.0735, might be appropriate.