The Canadian dollar fluctuated after four straight days of losses against its U.S. counterpart as the currency twice failed to fall below a key technical level. The loonie, as the currency is nicknamed, hasn’t weakened past C$1.01 per U.S. dollar since the Bank of Canada scaled back growth forecasts on Jan. 23. A technical measure has indicated for the past three days the Canadian dollar’s recent decline may have been too far, too fast. “Given that it hasn’t been able to break above C$1.01, we have seen some sellers come in and maybe position for a bit of a grind back towards parity,� said Blake Jespersen, managing director of foreign exchange at Bank of Montreal, by phone from Toronto, referring to the U.S. dollar versus the loonie. “It had a lot of momentum up to C$1.01, but since it’s stalled, so I think you’re seeing some momentum players come in and sell this with the view it’s going to struggle moving much higher.� The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, rose 0.1 percent to C$1.0056 per U.S. dollar at 8:09 a.m. in Toronto. It matched an almost six-month low yesterday. One loonie buys 99.44 U.S. cents. The 14-day relative strength index against the U.S. dollar has been below the 30 percent since Jan., a level that some traders see as a sign that an asset may be about to reverse direction. The measure is at 29.4 percent today. To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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