Canadian Dollar (CAD) Technical Major Currencies (2010-01-11)

The dollar versus loonie succeeded in insuring the breach of the symmetrical triangle pattern shown in last week's reports, alongside the breach of the neckline for the bearish technical pattern at 1.0400; strongly insuring the current bearish short term wave's continuation. Momentum indicators are showing oversold signs and therefore we could witness some bullish correction to retest the broken level (1.0400) and gain bearish momentum that supports achieving the expected bearish short term trend for this week. The expected bearish move will prevail is the daily close remains below 1.0605.

The trading range for today is among the key support at 1.9970 and the key resistance at 1.0605.

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

Previous day ReportSupport1.02001.01651.00901.00000.9970Resistance1.03451.04001.05101.06051.0690RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.0400 targeting 1.0200 and stop loss above 1.0510, might be appropriate.