The dollar versus loonie searched for a strong incentive to breach main support 1.0500 and was able to find it through forming a bearish (double top) technical pattern, shown in the image above, where its neckline is at 1.0470. We expect the pair to succeed in breaching this level and pace the way to insure the bearish direction's continuing overintraday and shortbasis, where its targets start from 1.0360 and will continue towards 1.0200. Chances of achieving a bearish trend remain intact as far as the four-hour closing is below 1.0560.
The trading range for today is among the key support at 1.0200 and the key resistance at 1.0715.
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 with the breach of 1.0470 and targeting 1.0360 and stop loss above 1.0560, might be appropriate|