Morning Report

The dollar versus loonie pair is showing a strong lean towards the downside, when a close was achieved below a critical 1.0560 since yesterday. Thus, it keeps the expected bearish direction's scenario for yesterday intact, where a right shoulder is forming for the bearish pattern previously mentioned, which takes the form of a minor bullish channel that forms a flag pattern. These factors make us expect an intraday bullish trend for today; targeting mainly the breach of 1.0460 and remaining below it, while then opening a way towards targeting 1.0200. Consequently, maintaining the pair's vital bearish direction requires resistance 1.0560 to prevail.

The trading range for today is among the key support at 1.0275 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.

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RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0460 and targeting 1.0275 and stop loss above 1.0560, might be appropriate.