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27 Jun 2013
Flash: USD/CAD loses momentum, deeper correction possible
FXstreet.com (Barcelona) - The price action and technical studies in the USD/CAD suggest that the upward momentum has lost slowed down, allowing for a deeper correction of the sharp gains, says Shaun Osborne, Chief FX Strategist at TDS.
Bulls awaiting at 'value areas'
Osborne spots structural support - short-term - in the upper 1.04 area intraday, adding that is important not to lose sight of the fact that the underlying trend is still clearly up. Osborne suspects the trend "will be revived by gains through the 1.0540/50 area (top of a short-term bull wedge pattern on the 6-hour chart) in the near-term." The TDS Strategist thinks that near-term, a 1.0460/1.0540 range is likely.
Bulls awaiting at 'value areas'
Osborne spots structural support - short-term - in the upper 1.04 area intraday, adding that is important not to lose sight of the fact that the underlying trend is still clearly up. Osborne suspects the trend "will be revived by gains through the 1.0540/50 area (top of a short-term bull wedge pattern on the 6-hour chart) in the near-term." The TDS Strategist thinks that near-term, a 1.0460/1.0540 range is likely.