Morning Report

The constant fluctuation around breached support yesterday, caused a bullish technical pattern to appear and force the dollar versus loonie to bullishly correction for the last bearish wave, seen in the image above. This pattern's targets are around 1.0535 - reached 38.2% Fibonacci correction -, where we expect a reversal to the downside to achieve an expected bearish move over an intraday basis; targeting first 1.0460, to pave the way to target 1.0305. As long as 1.0615 remains intact, the bearish short term direction will prevail.

The trading range for today is among the key support at 1.0305 and the key resistance at 1.0615.

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.

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RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.0535 targeting 1.0400 and stop loss above 1.0615, might be appropriate.