- Credit Agricole (based on Reuters)
Even though the USD/CAD's volatility stretched beyond the immediate resistance cluster, the pair still stabilised under the monthly R1. This area remains a rather strong resistance, keeping the pair from appreciating for the second day this month, implying a decline is possible. Furthermore, strong Canadian fundamentals and higher oil prices outweighed the overhead US NFP data, allowing the Loonie to begin posting gains versus the Buck. The weekly R3 is the nearest support level, but there is not enough momentum for the given pair to drop that low today.
Today 69% of all open positions are short (previously 73%). There are now 46% of orders to acquire the Buck, up from 20% yesterday.