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18 Jul 2013
Flash: USD/CAD to seek a closer test of 1.08/1.0850 - JPMorgan
FXstreet.com (Barcelona) - The overall upside risks in USD/CAD are intact, notes Nial O'Connor, FX Strategist at JP Morgan Securities, who added to the Bank's core long position on the Bernanke rout over the past week.
O'Connor adds: "The reversal in USD/CAD after approaching the critical resistance at the 1.0658 high from 2011 is in line with the short term consolidation view for the USD, with the 1.0320/1.0250 support area maintaining the upside bias while strength above the 1.0495 breakdown area would confirm the upside bias is back on track. As mentioned in our regular updates, we continue to see potential for USD/CAD to seek a closer test of the 1.08/1.0850 zone (38.2% retrace from the 2009 high/2010 peak)."
O'Connor adds: "The reversal in USD/CAD after approaching the critical resistance at the 1.0658 high from 2011 is in line with the short term consolidation view for the USD, with the 1.0320/1.0250 support area maintaining the upside bias while strength above the 1.0495 breakdown area would confirm the upside bias is back on track. As mentioned in our regular updates, we continue to see potential for USD/CAD to seek a closer test of the 1.08/1.0850 zone (38.2% retrace from the 2009 high/2010 peak)."