USD/CAD one to watch?

The loonie has been grinding lower over the past five days and is nearing the support area at 1.0460. This support level has held since the 8th of August '07 and if broken the pair could drift lower. The interest rate statement is out of Canada on Wednesday the 5th of September and is likely to be left at 4.5%. With Non-Farm Payrolls out of the US on Friday there is sure to be some movement on this pair. A trade idea for this pair would be to sell a break under 1.0460 with a 30 pip stop-loss.


UPDATE: 13th of September '07. The loonie has indeed broke through the 1.0460 level as we expected. At present the pair are trading at 1.0330 and hit a low of 1.0310 earlier today.