Morning Report

The dollar versus loonie halted it's ascend at 61.8% Fibonacci correction level and reversed to the downside; meanwhile, we expect it to form a bearish technical pattern over an intraday basis. The expected scenario, shown in the side image, where we await a minor bullish correction to build its base on 1.0665 and then start the bearish intraday that will help the suggested bearish trend to begin. From here we await a possible bearish intraday for today which targets 1.0520 and requires trading to remain below 1.0700 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.

RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0625 targeting 1.0520 and stop loss above 1.0520, might be appropriate.