Forex: USD/CAD back above parity; may extend higher – TD Securities

Forex: USD/CAD back above parity; may extend higher â€" TD Securities

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Forex: USD/CAD back above parity; may extend higher TD Securities

FITITOL--> FXstreet.com (San Francisco) -The USD/CAD pair encountered heavy buying interest Wednesday on broad USD strength as risk sensitive investors sought refuge, sending the pair to multi-month highs, but then pulled back slightly after news the EFSF will give Greece EUR 4.2B in aid.

USD/CAD rallied sharply above the 1.0000 figure and pushed above a cluster a support in the 1.0050 price zone to touch a 4-month high of 1.0061 in the early NA trading hours, but quickly pulled back to find support at the figure. As Shaun Osborne, Chief FX Strategist at TD Securities notes, “We think the underlying technical structure of the market at this point is much more supportive of an extension higher now than it was of a downside break out a couple of weeks ago,” comments Mr. Osborne. “A clear push above 1.0050 on a sustained basis should allow funds to move â€" perhaps quite quickly â€" up towards 1.0150/1.0250 range,” At time of writing, USD/CAD trades at 1.0025 in early Asia.