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27 Feb 2013
Forex Flash: USD/CAD may take a breather; 1.0446 retest on the cards - TDS
According to Toronto-based Shaun Osborne, Chief FX Strategist at TDS, "the emergence of a “spinning top” candle signal in USD/CAD on the 6-hour chart, replicated on the daily chart below, cautions that the trend higher is susceptible to a modest pull back or consolidation at least."
Shaun adds: "If prices do slip, we continue to think that the deeply entrenched bull trend means that corrections will remain limited. We spot minor short-term support at 1.0245/50. with stronger support at 1.0205/10."
He tips that after the breakout of the mid 1.02 zone (76.4% of the 1.04/0.96 decline), "a firm close on Friday would increase the chances of a full retracement of the 2012 decline from 1.0446."
Shaun adds: "If prices do slip, we continue to think that the deeply entrenched bull trend means that corrections will remain limited. We spot minor short-term support at 1.0245/50. with stronger support at 1.0205/10."
He tips that after the breakout of the mid 1.02 zone (76.4% of the 1.04/0.96 decline), "a firm close on Friday would increase the chances of a full retracement of the 2012 decline from 1.0446."