dollar Canadian dollar To October 20, 2010

dollar Canadian dollar  To  October 20, 2010

dollar Canadian dollar  To consolidate with bullish bias. CAD soft after Bank of Canada yesterday left its key rates unchanged as widely anticipated but slashed Canada''''s GDP growth forecasts for 2010 and 2011, and revised down its inflation outlook. dollar Canadian dollar also underpinned by China''''s rate hike, negative risk sentiment, weaker commodity & oil prices (Nymex crude settled down $3.59 yesterday at $79.49/bbl); but gains tempered by expectations of more QE measures from U.S. Federal Reserve. Data focus: 1230 GMT Canada August wholesale trade, 1430 GMT BOC monetary policy report. USD/CAD daily chart positive-biased as MACD & stochastics bullish; 5-day moving average staging bullish crossover against 15-day. Resistance at 1.0372-1.0379 band (yesterday''''s high-Sept. 23 high); breach would expose upside to 1.0509 (Sept. 8 high), then 1.0569 (Sept. 3 high) and 1.0672 (Aug. 31 reaction high). Support at 1.0228 (previous cap set Monday); breach would expose downside to 1.0159 (yesterday''''s low), then 1.0075 (previous cap set Thursday), 1.0008 (Friday''''s low) and 0.9980 (Thursday''''s 5-month low).