- Societe Generale (based on Reuters)
At the end of the previous week the USD/CAD extended its consolidation and remained relatively flat, on the brink of having the up-trend completely broken. Nevertheless, the bullish momentum was regained on Monday, with the Buck climbing over 85 pips. The Sep high and weekly R2 around 1.3470 proved to be a strong resistance, as it is attempting to limit the intraday volatility. A close above the immediate resistance, namely the Bollinger band and the weekly R1 around 1.3415, should renew the up-trend and provide the pair with another chance of reaching the 2004 high of 1.4002.
Bears remain in the majority, with 63% of traders being short the Buck. The share of buy orders, however, inched up from 43 to 57%.