Forex Flash: USD/CAD weak but not enough for now – TD Securities

FXstreet.com (Barcelona) - The USD/CAD short-term trading pattern remains the same, with reduced risk of a further push higher in the USD/CAD after yesterday’s sharp sell-off, “especially as channel resistance in the 0.9880/85 area is being reinforced by short-term pull back resistance now (0.9879)”, according to TD Securities analysts, adding there is not enough momentum to retest support in the low 0.98 area. “Short-term trend momentum has flattened out and we look for stable sideways trading to continue over the balance of the session”, they added, more biased to the downside in the next few weeks. “Given the market stabilization in the low 0.98 area, close to retracement support, we have to remain alert to the risk of a swing higher in funds but the objective we had laid out for funds—a test of the 0.9750/00 zone– remains a reasonably reachable target”, wrote Shaun Osborne and Greg Moore, suggesting to sell rallies while spot remains below 0.9900/10.

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