Morning Report

Fibonacci correction level 76.4% stood strongly against the dollar versus loonie's upside push last Friday, where it stropped ascending and pushed the pair to sharply descend; nearing the first target at1.0520 and gradually heading towards pivotal support 1.0445. We expect to see a bearish intraday today with chances of some bullish corrections, attempting to gain enough momentum to support the awaited descending process that mainly targets the breach of 1.0445; paving the way to continue the bearish short-term direction. It is vital that the daily close remain below 1.0700 to achieve expectations mentioned above.

The trading range for today is among the key support at 1.0345 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 1.0585 targeting 1.0445 and stop loss above 1.0700, might be appropriate.