Forex Flash: USD/CAD potential bullish set up - TDS

FXstreet.com (Barcelona) - The USD/CAD finished the day sharply higher, as safe haven flows into the pair helped it close at its highest level since late March 2013. According to Shaun Osborn, Chief FX Strategist at TDS, “The sharp extension higher in spot in the overnight market has been powerful, pushing through minor trend resistance in the upper 1.01 area. But, so far, resistance around 1.0235 has held. We look for support now on dips to the 1.0180 area intraday. A push through 1.0235 is bullish from a short-term point of view (and beyond in all likelihood).”

Additionally he noted, “While intraday gains in USD/CAD have stalled in the low 1.02 area (reflecting the above noted 1.0235 resistance zone, the 40-day MA at 1.0211 and the redrawn the channel off the early March highs at 1.0207), we still think the set up here is potentially very bullish. An important short-term low is in for the market now (inside range day Friday) and a clear move through 1.0207."