[Calxy]

USD/CAD – negative bias on funds, short-term rallies provide a selling opportunity. The market remains range bound in a broader sense, however, and while this downward sloping, running consolidation points to an eventual resumption of the USD slide (below 1.0563 currently), there is little evidence of any significant momentum either way at the moment. Support in the 1.0660/70 area is providing some underpinning for the USD ahead of a retest of the low 1.06 area while resistance in the 1.0745/50 range provides some restraint on the USD’s powers of recovery ahead of the 1.0790/00 area. The weekly chart continues to shape up bearishly for the USD, reaffirming the belief that the main directional risk from a short/medium term point of view is lower for the USD.