Forex Flash: USD/CAD may trade above 1.0205/10 intraday – TD Securities

FXstreet.com (Barcelona) - The CAD has caught a modest bid since the start of the week amid investor concerns about developments in the Eurozone but this is only partially offsetting underlying worries about the Canadian economy, according to TD Securities analysts, expecting domestic data this week to underscore weak inflation and the soft growth trends evident late last year spilling over into the early part of 2013 to reinforce the “low for a lot longer” message on BoC policy settings.

Regarding the charts, the USD/CAD remains supported in the upper 1.01 zone: “Note that a potential bull wedge consolidation may allow for a drop to the 1.0160 area, a little below trend line support which is under some pressure currently”, wrote analysts Shaun Osborne and Greg Moore, forecasting USD strength intraday, above 1.0205/10. “The technical story gets a lot more constructive for USD/CAD above 1.0255/60”, they added.