USD/CAD to 28 February 2011

USD/CAD to 28 February 2011

USD/CAD to trade with bearish bias. Undermined by buoyant commodity and oil prices (Nymex crude settled up 60 cents Friday at $97.88/bbl), improved investor risk appetite. Data focus: 1330 GMT Canada 4Q balance of payments, 4Q GDP, December GDP. USD/CAD daily chart negative-biased as MACD & stochastics bearish, although latter at oversold, suggesting sideways or lower USD/CAD trading near-term. Support at 0.9769 (Friday''''s low); breach would expose downside to 0.9708 (Feb. 28, 2008 reaction low), then psychological 0.9700 and 0.9600 levels. Resistance at 0.9832 (Friday''''s high), then at 0.9847 (hourly chart) and 0.9901 (Thursday''''s high); breach would target 0.9958 (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).