Forex: USD/CAD breaks 1.0350 and trades at 11-week low

By IBTimes Staff Reporter | January 05 2010 7:44 AM

FXstreet.com (Barcelona) - The Dollar's rejection at 1.0410 against the Canadian in the early European morning has continued throughout the session to break the 1.0350 support level and reach fresh lowest levels since October 20 at 1.0340. Currently the pair is trading around 1.0340/50, 0.60% below today's opening price action at 1.0411.

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According to TJ Marta, Chief Market Strategist at Marta on the Markets, USD/CAD is dropping to the lows of the range: USD/CAD (1.0374) is down again overnight and continues to test lows since Oct. Support lies at 1.0352 (Jan4 low). Resistance lies at 1.0749 (Nov27 high), 1.0870 (Nov2 high), 1.0959 (Oct high), 1.0993 (Sep high), and then 1.10 (psychological). In terms of other assets correlating with USD/CAD, watch the CRB, crude oil (both negative), USD index (positive) and SPX (negative). The 10yr interest rate differential is rising in significance.

Ian Coleman, day trader at Turtle Index, gives us his scoop on the pair: USDCAD looks like it is heading lower to the previous low in the 5th wave (1.0300). All signals are bearish.

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