[Calxy]

USD/CAD – The short term technical position of the CAD has weakened a little further over the past 24-hours; USD/CAD staged its first higher close, just about, in eight sessions yesterday and the wide range seen over the course of the day implies a low/reversal of some (short term) importance might have formed. The combination of a new low, higher high and higher close implies a key reversal or outside range session formed yesterday, even if the narrow range between the open and close suggests a weak-ish form. A higher close today would underpin the confidence that a short term USD/CAD low may be in; if so the gains are liable to remain relatively limited for now – likely to the 1.10/1.11 range – even if the rebound appears to be taking root very near the early June base. We change our focus from selling rallies to buying dips.