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Flash: Bearish Selling against CAD crosses – Westpac

FXstreet.com (Barcelona) - According to the Westpac Strategy Team, “On balance model signals and event risk seem to suggest a sustained break in USD/CAD above 1.03 is a bridge too far, at least for the week ahead.”

In addition, the EUR/CAD also seems poised for some downside later in the week. The ECB’s Nowotny, Liikanen, Coeure, Noyer, Weidmann and Draghi are all scheduled to speak this Thursday and there should be no shortage of “negative deposit rate” trial balloons.

“We would look to sell USD/CAD at 1.0305, targeting 1.0150, with a stop at 1.0350. We would also sell EUR/CAD at 1.3335, targeting 1.3100 with a stop at 1.3405. Via options, buy a 1 week USD/CAD put, strike 1.02, premium 0.16% USD (spot ref 1.0270, indicative only).” the team recommends.

GBP/USD resumes the downside, hits fresh lows

Following a short-lived spike toward 1.5150, GBP/USD turned lower and broke below the 1.5070 support area toward fresh 7-week lows as Bernanke dialed down the dovish tone saying bond purchases could taper in coming months if data deems appropriate.
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USD/MXN bounces off lows on Bernanke

The Mexican peso is trimming early gains against the greenback on Wednesday, pushing the cross from lows around 12.2200 to the current region of 12.3100....
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