The dollar versus loonie stopped ascending yesterday at 61.8% Fibonacci correction for the last bearish wave, where the loss of bullish momentum will cause the pair to start reversing to the downside. We see that the possible bearish short term wave could start today, where in its role could complete a bearish technical pattern, shown in the image above, targeting the breach of main support at 1.0425, to openthe way to reverse to the bearish direction steadily. Momentum indicators support our bearish expectations, while keeping in mind the importance of the daily closing toremain below 1.0695 for the downside expectations to prevail.
The trading range for today is among the key support at 1.0425 and the key resistance at 1.0760.
The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.
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|Recommendation||Based on the charts and explanations above our opinion is selling the pair with the breach of 1.0610 targeting 1.0425 and stop loss above 1.0695, might be appropriate|