Forex: Loonie flat, USD/CAD holds

By IBTimes Staff Reporter | January 21 2010 9:27 PM

FXstreet.com (London) - USD/CAD is continuing to trade in a tight range this session. Oil dropped off another Dollar today in weaker trade as risk aversion swept the market, as reaction intensified over Obamas bank reform policies data. Oil this session still trading firm at around 76$.

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General market sentiment is swinging in and out of risk appetite territory as major report come in giving contrary indicators of the health of the economy. Banking policies in both US and China have caused a strong market reaction, as predictions over effect coming out of the new reforms begin to whirl.

Pair currently trades flat, moving sideways in a narrow channel, bounded by 1.0500 and 1.0525.

USD/CAD currently trades at 1.0508, virtually unchanged on the session. PreciseTrader envisages a limited bull move for the pair in this forecast: Hourly Trend is Turning Down while 10590 holds and Daily Trend is Sideways while 10595 holds, so expect the price to make Higher Highs but the Upside may be limitedThe Hourly Trend has been in a Range Trading with a limited Upside ,10565-90 are the critical levels to watch to maintain the bearish outlook .

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