The Canadian dollar lost ground after the Bank of Canada as expected left its key rate unchanged at 1 percent at its review on Tuesday, helping USD/CAD break above a range-high of 1.0081.

Next target up for USD/CAD may be 1.0109 (R1) as suggested by the 38.2 percent Fibonacci retracement from 1.0285 to 1.0001, before a relatively stronger resistance near 1.0120 (R2).

As of 16:45 GMT, the pair was at 1.0084, after rising to a high of 1.0090, and still up from its previous close of 1.0055. 

After hitting the 3-week low of 1.0001 last Friday, the pair has been holding an 80-pips range, which has broken at around 16:05 GMT.

The dollar is recieving support from uncertainties surrounding the euro bond issue which is hurting the single currency. Obama's plans to extend a Bush-time tax holiday scheme is also helping the greenback.

US October consumer credit data, due at 20:00 GMT, may impact the pair. Analysts widely expect the credit disbursals to fall by $1 billion compared with a rise of $2.15 billion in September.

From Canada, November housing starts data due Wednesday is the next economic news for the pair. Analysts expect a rise of 171,700 for last month, more than October's 167,900 rise.

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Next target up for USD/CAD may be 1.0109 (R1) as suggested by the 38.2 percent fibonacci retracement from 1.0285 to 1.0001, before a relatively stronger resistance near 1.0120 (R2).