Forex: Loonie weakens, USD/CAD +45 pips

By IBTimes Staff Reporter | January 19 2010 9:30 PM

FXstreet.com (London) - USD/CAD is trading to the upside this session. Oil moved slightly off on warmer weather forecasts in the US in previous days, and a slower than expected recover in weighing on inventories. Oil still trading firm at around 77$.

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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. Market eyes Weds and Thursday as key dates, with BoA, Morgan Stanley and GS all releasing their reports.

Pair currently trades bullish, trades straight up since the open, before encountering resistance at 1.0360.

USD/CAD currently trades at 1.0352, up nearly 45 pips on the session. PreciseTrader envisaged a limited bear slide for the pair earlier in this forecast: Bears have to be CAUTIOUS. Hourly Trend is Sideways while 10340 holds and Daily Trend is also Sideways while 10490 holds, so expect the price to be Choppy and Downside may be limited. The Hourly Trend has also been in a Range Trading so expect a Choppy trading until the breakout,10320-40 are the critical levels to watch to maintain the bearish outlook

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