Morning Report

The dollar versus loonie pair was able to stabilize below main resistance levels for the previously breached bearish direction, which is currently at 1.0535; thus, supporting the return to the downside. The only drawback for the downside trend's continuation is the 67.8% Fibonacci correction at 1.0455, where we expect the pair to be pressured in an attempt to breach it and achieve a possible bearish direction over an intraday basis. The bearish trend's expectation for today relies on the four hour close below 1.0535, mainly targeting next reaching 1.0200.

The trading range for today is among the key support at 1.0265 and the key resistance at 1.0710.

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 1.0535 and targeting 1.0360 and stop loss above 1.0615, might be appropriate.