- Rabobank (based on WBP Online)
The USD/CAD's volatility was limited by the 20-day SMA and the upper Bollinger on Friday. Nevertheless, the pair behaved according to the forecast, as it advanced only 17 pips, failing to close near the immediate resistance. The Greenback is expected to outperform its Canadian counterpart this Monday, as technical studies are giving bullish signals in the daily timeframe. Furthermore, trade opened just above the weekly PP, which is preventing the US Dollar from edging lower. However, the US currency's gains are unlikely to extend beyond 1.32.
Bears keep outnumbering the bulls, as 71% of traders are short the Buck. The number of purchase orders increased from 53 to 60%.