Forex: Loonie strengthens, USD/CAD +6 pips

  @ibtimes on January 20 2010 9:18 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 ahead of China CPI and GDP data. Oil this session still trading firm at around 76$.

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. Market eyes China data as key risk event later this session, as Chinese fiscal tightening policy still perceived unfavourably by players..

Pair currently trades flat, moving sideways in a narrow channel, bounded by 1.0465 and 1.440.

USD/CAD currently trades at 1.0460, up nearly 6 pips on the session. PreciseTrader envisaged a limited bull move for the pair earlier in this forecast: Hourly Trend is Corrective Up while 10290 holds and Daily Trend is Sideways while 10490 holds, so expect the price to make Higher Highs but the Upside may be limited. The Hourly Trend has been creeping higher but expect the Bulls to struggle near 10410-40 levels ,10290-30 are the critical levels

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