Market Sentiment on the USD/CAD remains on the upside in the long term picture as long as support 1.0774 holds firmly. A clear break of resistance 1.1171, its highest since 4years could see further demand of the pair to psychological zone 1.1500. However in the short term picture, a break below support 1.0774 could see a supply of the pair to 1.0309 and further downside to 1.0951 could be seen.
A key economic report to watch out for is the Feds meeting which is scheduled tomorrow on Wednesday, January 29 2014 as this would determine the fate of the greenback. Investors are betting that months of broad improvements to U.S. economic indicators will prompt the Fed to trim around USD10 billion from its USD75 billion bond-buying program.
Data released on Tuesday January 28, 2014 also showed that U.S. consumer confidence rose to a five-month high in January. The Conference Board said its index of consumer confidence improved to 80.7 this month from a downwardly revised 77.5 in December. However, the Commerce Department reported earlier that durable goods orders fell 4.3% in December, confounding expectations for a 1.8% gain.