Morning Report

The four hour chart is showing that the dollar versus loonie was able to breach the neckline for the bearish technical pattern shown in yesterday's report. This breach paves the way to achieve a bearish direction over an intraday basis ; targeting 1.0390 mainly.Stochastic is showing positive signs, which could force the pair to retest the breached level before heading towards achieving targets. The expected bearish direction will prevail if 1.0640 remains intact.

The trading range for today is among the key support at 1.0390 and the key resistance at 1.0700.

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 1.0580 targeting 1.0390 and stop loss above 1.0640, might be appropriate.