- TD Securities (based on FXStreet)
Even though the USD/CAD failed to inch higher on Thursday, the descending channel pattern remains intact, as no serious movement to the downside occurred. The outlook, nevertheless, remains bullish, with the weekly S1 providing immediate support at 1.3391 and the channel's lower border, along with the monthly S1, the weekly S2 and the 200-day SMA, forming another strong demand area below 1.3350. However, according to technical studies in the daily and the weekly timeframes, the given pair could consolidate around the 1.34 level until the channel's resistance line is retested.
Bulls keep gaining numbers, as 57% of all open positions are long (previously 54%). At the same time, the number of purchase orders lost one percentage point, sliding down to 55%.