USD/CAD holds above 1.0300 after BOC statement

By IBTimes Staff Reporter | January 11 2010 2:26 PM

FXstreet.com (Buenos Aires) - Dollar is positive on the day only against Canadian dollar after the pair hit a fresh monthly low at 1.0250 early Europe. Canadian dollar has been rising favored by oil prices that reached $ 83.95 per barrel today, but lost ground since that level, sending USD/CAD to test an intraday high of 1.0342.

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Quoting right now at the 1.0320 area, pair holds above 1.0300 after BOC official comments about persistent CAD strength has been dragging on growth in the country, while economy is still consider fragile. The rebound in the country housing sector attributed to low rates, signals no rate hikes in the short term, supporting some bullish perspective for the pair ahead, also supported by some downside correction developing in oil prices.

The pair, started the around 1.0300, under a weekly ascendant trend line today around 1.0350 broken past Thursday; according to Rajoo C. from precise trader, the Hourly Trend is Sideways Down while 1.0350 holds and Daily Trend is also Sideways Down while 1.0535 holds, so expect the price to make Lower Lows. The Daily Trend has been creeping lower and approaching the prior swing low of 1.0205, supporting a technical bearish perspective for the pair.

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