- Societe Generale (based on CNBC)
The US Dollar experienced further weakness against its Canadian counterpart yesterday. The nearest support cluster around 1.2370 failed to stop the decline, as the USD/CAD settled at 1.2341, after testing the monthly PP. Although the support around 1.23 was able to limit the losses, the given pair is likely to cross that area today. Moreover, if fundamentals disappoint, we could even see the Greenback slump to the second support cluster around 1.2265. Meanwhile, technical studies retain bullish signs, unable to confirm the scenario.
Long positions returned to its Friday's level of 44%, whereas the portion of purchase orders increased from 57 to 59%.