Forex Flash: USD/CAD bullish breakout unlikely in the short-term – TD Securities

FXstreet.com (Barcelona) - Commodity currencies are underperforming today and the Loonie follows that path. However, breaking out of the USDCAD range is an unlikely prospect in the short-term as the cross should "struggle to better the 0.9930/35 area and, if it does, there is more selling interest likely in the mid/upper 0.99s", wrote analysts Shaun Osborne and Greg Moore, pointing to the new market focus, the Canadian government's decision on the CNOOC/Nexen bid due Dec 10th.

"On the short-term charts, USDCAD is slowly ratcheting lower and the trend is definitely your friend for the moment", they wrote, pointing to short-term gains to be capped in the 0.9960/65 area while there is still good support around 0.99. "We rather think that the market made a significant short/medium term high mid-November at 1.0050 and we look for push to 0.97/0.98 in the next few weeks", they added.