Morning Report

The dollar versus loonie is graduallyapproaching the first awaited target around 1.0520, with a possible scenario appearing to insure more bearish short term movement, shown in the image above, where the pair could possibly rebound off of minor support 1.0495 and attempt a minor bullish correction to then gain bearish momentum to achieve more bearish movement to target levels 1.0250 - 1.0200. From here the expected direction for today is bearish over an intraday basis, initially targeting 1.0495 and then followed by some minor bullish correction. It is vital that trading remain below 1.0700 to maintain chances of achieving the expected bearish trend.

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 from 1.0610 targeting 1.0495 and stop loss above 1.0700, might be appropriate.