- Kazuo Shirai, MUFG Union Bank NA (based on Bloomberg)
On Thursday, the US Dollar suffered rather serious losses yesterday, but was unable to negate Wednesday's gains. Moreover, the Greenback underperformed, as the 20-day SMA could not prevent the USD/CAD from declining. Nonetheless, the given pair is likely to regain the bullish momentum today, despite technical indicators now emitting mixed signals. The nearest significant resistance is now located around 1.2375, represented by the 100-day SMA and weekly R1. However, with the resistance trend-line now even closer, gains are not expected to last through all of next week.
Bulls are now in the majority, taking up 55% of the market, whereas the share of buy orders edged down from 52 to 51%.