The dollar may weaken below parity with the Canadian currency should it breach a key level of so- called support, Commerzbank AG said, citing trading patterns. The currency is nearing C$1.0052, the December low, Axel Rudolph, a senior technical analyst at Commerzbank in London, wrote today in a note to clients. This support level “is thus still expected to give way with the 200-day moving average and the October low at C$0.9932 and C$0.9892 then being back in sight,� he wrote. The dollar weakened 0.2 percent to C$1.0130 at 6:26 a.m. in New York extending its decline in the past month to 2.4 percent. The U.S. currency last traded at parity with the so-called loonie on Nov. 1, according to data compiled by Bloomberg. The exchange rate may return to parity “within the next month or so,� Rudolph wrote in an e-mail confirming the report. Support refers to a level where analysts anticipate orders to buy a currency and its related instruments. The stronger the support, the more selling is needed to drop below that level. In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, currency or index. To contact the reporter on this story: David Goodman in London at Dgoodman28@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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