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Flash: We still think dips to 1.0300 area in USD/CAD are a buy - TD Securities

FXstreet.com (Barcelona) - According to Shaun Osborn, Chief FX Strategist at TD Securities, “quiet trading reflects holiday markets (UK and US closed). USD/CAD is trading in a tight range so far today around the base of the bull channel that has guided that market up form the early May lows. Bull trend momentum has clearly waned a little on the short-term oscillators but the broader bias remains USD-constructive as far as we are concerned."

Osborn went on to say, “we look for support in the low 1.03 area to hold—and can allow for a little wandering outside of the bull channel near-term without getting too worried about losses accumulating. Resistance is 1.0380/00 but the remainder of the session is liable to see trade play out in a narrower range than that.”Last Thursday’s push back from the high in the 1.04 region and the market’s close well off the peak represents a modest set back for USD/CAD rally."

On a final note Osborn commented, “we may see a period of consolidation from here but the overall trend remains constructive from alonger-term point of view, we feel. Even with the market edging back from Thursday’s high, the weekly close (1.0318) was strong enough to sustain the rally and break weekly trend resistance (1.0305, now support). With short, medium and long term trend momentum studies still bullishly aligned(albeit a little less strongly on the short-term studies), we still rather think USD/CAD losses should remain limited for the moment and that modest dips(to 1.03 or just below) are a buy”.

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