Flash: USD/CAD still searching for breakout – TD Securities

FXstreet.com (New York) - The USD/CAD trading retains a positive technical bias in our opinion but a clear and sustained upside break out remains so far elusive, notes the TD Securities Team.

Key quotes

“USD/CAD has been consolidating in the past few days following last Friday’s peak above 1.0550.”

“We think the market is coiling ahead of another move up—forming a bull flag/bull wedge. An early attempt today to move up through the consolidation ceiling (bull trigger) has not generated a lot of follow through but we think the break out should be sustained.”

“We look for a push back to 1.5065/70 to retest last Friday’s high initially and for 1.0600/50 to be reached shortly thereafter from a short-term perspective. We think short-term support is 1.0470/75 and (key) 1.0440/845.”

GBP/USD hovering around 1.5500

The GBP/USD has managed to hold pretty well on Thursday given the USD broad strength amid month-end flows.
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EUR/JPY remains above the 130.00 mark

Despite the increasing Yen bullish pressure, the EUR/JPY has been trading sideways in between 130.00 and 130.50 throughout the last two days. However, as Kathleen Brooks said in a recent interview, the yen could be set to face a bullish movement in the upcoming days.
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