- Rabobank (based on FXStreet)
The USD/CAD experienced another small decline, with volatility limited near the 1.3240 level. The exchange rate dropped to this area again today, but edged back closer to the opening price. The current step-by-step decline might turn into a trend if the behaviour gets confirmed today, even though technical studies are now giving bullish signals. Despite a holiday in the US, bulls might still prevail and cause the exchange rate to retake the 1.33 mark, as the immediate resistance lies out of reach. We, however, believe the Buck is to fall for the third consecutive day and test the weekly PP.
Bears remain in the majority, as 51% of all positions are still short. Meanwhile, the portion of buy orders declined from 69 to 66%.