Canadian dollar September 13, 2010
USD/CAD to consolidate with risks skewed lower. Pair undermined by healthier investor risk appetite, negative USD sentiment. But USD/CAD losses tempered by softer oil prices (Nymex crude settled down 54 cents yesterday at $81.67/bbl). Data focus: 1230 GMT Canada August new housing price index. USD/CAD daily chart negative-biased as MACD bearish, stochastics stays suppressed at oversold, suggesting sideways or lower USD/CAD trading near-term. Support at 1.0085 (yesterday''''s low, matching Monday''''s low), then at 1.0070 (Thursday''''s low) and 1.0058 (Oct. 6 low); breach would expose downside to 1.0010 (April 29 low), then 0.9926 (April 21 low), 0.9816 (May 21, 2008 reaction low) and 0.9708 (Feb. 28, 2008 reaction low). Resistance at 1.0145 (hourly chart), then at 1.0183 (yesterday''''s high); breach would expose upside to 1.0227 (Friday''''s high), then 1.0272 (Oct. 5 high), 1.0313 (Oct. 1 high) and 1.0332 (55-day moving average).