Canadian Dollar (CAD) Technical Major Currencies (2009-12-18)

The dollar versus loonie achieved a bearish correction, which is expected to touch the new support level - breached resistance level - at 1.0660. We expect to achieve a base built on this level to push the pair towards targeting resistance levels for the ascending channel once again at 1.0745, in an attempt to breach and resume the bullish short term direction. From here, we expect an overall bullish trend for today, where its main targets after breaching 1.0745, start at 1.0830. Keeping in mind, these expectations will remain intact if the breach of 1.0615 is not achieved.

The trading range for today is among the key support at 1.0535 and the key resistance at 1.0920.

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

Weekly ReportMonthly ReportSupport1.06601.06151.05751.05351.0485Resistance1.07101.07451.07801.08451.0870RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.0665 targeting 1.0745 and stop loss below 1.0615, might be appropriate.