Canadian Dollar 21 February 2011
USD/CAD to consolidate. Undermined by weaker USD sentiment, buoyant commodity and oil prices (Nymex March crude expiring tomorrow settled down 16 cents Friday at $86.20/bbl, but April crude was up 87 cents at $89.71). But USD/CAD losses tempered by lower-than-expected 1.4% rise on year in Canada January core CPI (vs +1.5% forecast). USD/CAD daily chart mixed as MACD bearish, but stochastics turning bullish at oversold. Resistance at 0.9874 (Friday''''s high); breach would target 0.9904 (Wednesday''''s high), then 0.9986-0.9991 band (Feb. 11 high-Feb. 1 high), 1.0057 (Jan. 31 high) and 1.0115 (Dec. 24 high). Support at 0.9818-0.9813 band (Friday''''s low-Thursday''''s low); breach would expose downside to 0.9708 (Feb. 28, 2008 reaction low), then psychological 0.9700 and 0.9600 levels.
USD/CAD to consolidate. Undermined by weaker USD sentiment, buoyant commodity and oil prices (Nymex March crude expiring tomorrow settled down 16 cents Friday at $86.20/bbl, but April crude was up 87 cents at $89.71). But USD/CAD losses tempered by lower-than-expected 1.4% rise on year in Canada January core CPI (vs +1.5% forecast). USD/CAD daily chart mixed as MACD bearish, but stochastics turning bullish at oversold. Resistance at 0.9874 (Friday''''s high); breach would target 0.9904 (Wednesday''''s high), then 0.9986-0.9991 band (Feb. 11 high-Feb. 1 high), 1.0057 (Jan. 31 high) and 1.0115 (Dec. 24 high). Support at 0.9818-0.9813 band (Friday''''s low-Thursday''''s low); breach would expose downside to 0.9708 (Feb. 28, 2008 reaction low), then psychological 0.9700 and 0.9600 levels.