- Rabobank (based on CNBC)
The USD/CAD declined on Wednesday more than anticipated, as the pair breached the 1.30 major level and found support only at 1.2971, namely the weekly S2. Nonetheless, the weekly S1 is likely to cause the US Dollar to rebound today, but the cluster of important levels around 1.3060 is now providing rather strong resistance. As a result, the pair will doubtfully advance beyond the resistance cluster, even though technical studies are showing bullish signals, supporting the possibility of a positive outcome.
Market sentiment slightly improved, as 37% of traders are now long the Greenback. However, the number of buy orders declined dramatically, from 71 to 32%.