Canadian dollar October 14, 2010
U.S. dollar/Canadian dollar to consolidate with risks skewed to downside after setting 5-month low of 1.0011 yesterday. Pair undermined by healthier investor risk appetite, negative USD sentiment, firmer commodity & oil prices (Nymex crude settled up $1.34 yesterday at $83.01/bbl). Data focus: 1230 GMT Canada August trade balance. USD/CAD daily chart negative-biased as MACD bearish, while stochastics stay suppressed at oversold, 5- & 15-day moving averages falling. Support at 1.0011 (yesterday''''s low, matching April 29 low); breach would expose downside to 0.9926 (April 21 low), then 0.9816 (May 21, 2008 reaction low) and 0.9708 (Feb. 28, 2008 reaction low). Resistance at 1.0116 (hourly chart), then at 1.0183 (Tuesday''''s high); breach would expose upside to 1.0227 (Friday''''s high), then 1.0272 (Oct. 5 high), 1.0313 (Oct. 1 high) and 1.0334 (55-day moving average).