Forex: Loonie sideways, in range 1.0285-1.0262

By IBTimes Staff Reporter | January 10 2010 8:55 PM

FXstreet.com (London) - USD/CAD is trading tightly range bound this session. Oil stays firm above $80 amidst political tensions and increased demand off the back of the recent cold snap, perhaps pausing ahead of cues from OPECs meeting in Angola, scheduled for tomorrow.

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Canadas economy is closely linked to the price of oil, and the state benefits for a rise in oil prices. In the absence of major cues and in thin trade due to Japanese holiday, Loonie will likely trade very softly this session.

Dollar weakness impacted this pair, which lost about 40 pips since Fridays close, as investor took sotck of the significance of poor labour data on Friday. We find pair trading in range between 1.0285 and 1.0262.

USD/CAD currently trades at 1.0277, down just a 7 pips on the open. PreciseTrader see's range trading as likely course of this session according to the technical indicators: Hourly Trend is Sideways while 10275 holds and Daily Trend is Sideways Down while 10535 holds, so expect the price to be Choppy with a Upside bias. The Daily Trend has been creeping lower and approaching the prior swing low of 10205. The Hourly Trend is in a Range Trading and exhibiting signs of bottoming so the bears have to be Cautious,10275-05 are the critical levels to watch to maintain the bullish outlook.

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