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The Canadian dollar hit new multi-year lows with USD/CAD trading peeking above 1.21 and peaking out at 1.2111 so far.

The loonie hits the lowest since 2009  on a one-two punch from both sides of the pair.

Canadian manufacturing sales dropped by 1.4% in November, around  triple the early expectations for a slide of 0.5%. This came on top of a downwards revision for October: a fall of 1.1% instead of 0.6% originally reported.

In the US, we did not get any significant release after the holiday yesterday, but the greenback also returned from the long weekend with fresh energies. The USD is gaining against other currencies as well, and the loonie is no different.

The pair broke above the 1.2040 line that was the previous high just a few days ago and made significant gains. Below 1.20, 1.1925  provides support, and it is closely followed by 1.1888, which served as resistance earlier. The last line on the downside is the round number of 1.18 which was a swing low and also more significant support beforehand.

The Bank of Canada makes its decision tomorrow and every change in the neutral statement will be closely watched.

For more, see the Canadian $ prediction. And here is the chart:

USDCAD forex chart January 20 2015 Canadian dollar down against the USD