Canadian dollar October 6, 2010
USD/Canadian dollar to consolidate with bearish bias. Pair undermined by healthier investor risk appetite, negative USD sentiment, stronger commodity & oil prices (Nymex crude settled up $1.35 yesterday at $82.82/bbl). But USD/CAD losses tempered by concerns over adverse impact of weak U.S. growth on Canadian economy. Data focus: 1400 GMT Canada September Ivey PMI. USD/CAD daily chart still negative-biased as MACD & stochastics in bearish mode, although latter at oversold; meanwhile, 5-day moving average below 15-day and falling. Support at 1.0150 (yesterday''''s low); breach would expose downside to 1.0102 (Aug. 5 reaction low), then 1.0010 (April 29 low) and 0.9926 (April 21 trough). Resistance at 1.0225 (hourly chart); breach would expose upside to 1.0272 (yesterday''''s high), then 1.0313 (Friday''''s high), 1.0346 (Thursday''''s high) and 1.0361 (Sept. 28 high, near confluence of 55-day & 200-day moving averages).