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Forex Flash: USD/CAD targets 1.03; support firm at 1.0050/1.0100 - TDS

The TDS FX division, headed up by Shaun Osborne, continues to favour the upside in USD/CAD, saying that "modest losses will be more or less easily absorbed by willing buyers on modest dips."

Shaun adds: "We say this because 1) the market has made some clear progress through some important resistance points in the past few days, sustaining the uptrend as the market carves out successive higher highs and higher lows (the hallmarks of a bull trend) and 2) trend momentum oscillators are bullishly aligned across a range of time frames."

"We think the rally/consolidation/rally picture of the last 6 months is a bullish structure (bull flag) which puts the low 1.03 zone as the measured move target" Mr. Osborne notes. He tips support at 1.0050/1.0100."

Commodity Brief: Commodities selling off on USD strength

Wednesday was a day centered on the USD, and latest FOMC meeting minutes, in which could be read the committee is ready “to taper or end its purchases before it judged,” or in Kathy Lien words: “this means that Fed officials could end Quantitative Easing way before they reach their 6.5% unemployment target,” the analyst said. This led to a massive buying of USD and USD denominate bonds, making for the biggest rally in USD index in last 3 months, Bloomberg reported.
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