USD/CAD in highs around 1.0580

Fxstreet.com (Edinburgh) - The USD is quickly picking up pace on Tuesday, lifting the USD/CAD to the area of 1.0580, levels last seen in early October 2011.

USD/CAD upside hinging on the greenback

The bullish momentum in the US dollar keeps pushing the pair higher, testing fresh year-and-half highs in the vicinity of 1.0580. “Despite the limited range, price action still looks more bullish overall, with the potential makings of a bull flag of head & shoulders continuation pattern on the short-term charts. 1.0550 is the key resistance (and neckline of the H&S—a break of which would target another big figure higher) to watch, while 1.0415/20 is key short-term support”, commented G.Moore and S.Osborne, FX Strategists at TD Securities.

USD/CAD levels to consider

The pair is now advancing 0.69% at 1.0569 with the next hurdle at 1.0573 (high Oct.5 2011) followed by the psychological level at 1.0600. On the downside, a break below 1.0496 (low Jul.2) would bring 1.0487 (low Jul.1) and finally 1.0465 (MA10d). According to analysts at Autochartist, there is an emerging pattern of an upside triangle in the 15-min charts, pointing to a continuation of the upside.

EUR/USD slips to lows sub-1.3000

The EUR/USD saw a quick dip to fresh lows as USD buying intensified with US traders joining in the market.
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GBP/USD falls to trade below 1.5150

The Sterling is currently trading lower against the US Dollar and after falling around 100 pips from 1.3235 in the European session, the pair has broken down the 1.5200 area to price below the 1.5150 at daily lows of 1.5135.
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