Forex Alerts 10/28/2008

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Alert - 17:15 (CET) - Dollar finds resistance at 1.30 Canadian Dollars

The UsdCad is trading at 1.2939, ranging between 1.2814 and 1.3017. On the other hand, the price is over yesterday's close at 1.2952. Checking the hourly graphics, we see that the 20- and 50-day EMA are over the 200-day EMA.

The resistance at 1.3000 (key) is being challenged. If broken, the traders will contemplate the next levels at 1.3365 (July 1st, 2004 high) and 1.3788 (July 17th, 2004). The supports are watched, just in case, at 1.2432 (October 23rd low), 1.2121 (October 22nd low) and 1.1775 (October 17th low).

In the last 24 hours, the pair rebounded twice from the 1.30 level. The recent crude price rebound, from the 60 dollars low, allowed the loonie to advance against the greenback.

Canada has the largest oil reserves in the World, but the extraction cost is higher than Saudi Arabia's. So, the swings in the crude price have a big impact on the loonie.

Meanwhile, the 60-minute RSI is at 54 points, after being very overbought. The volatility per hour could reach 190 pips. Checking the daily graphics, the current price is over the 50.00% (1.2589) and under the 61.80% (1.3422) Fibonacci retracements.

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