- High Frequency Economics (based on WBP Online)
At the end of the previous week the Loonie outperformed the US Dollar, forcing the pair to plunge down to the support trend-line. Moreover, USD/CAD tested the lower Bollinger band, while ignoring the monthly S1. All the data indicates a slump for this currency pair, and the technical studies support the bearish bias. Furthermore, the Greenback opened trade today under the channel support trend-line, while the closest support is located at 1.2450, namely the monthly S1.
Market sentiment deteriorated, with 58% of participants being long the Greenback (66% before). The gap between the buy (52%) and sell (48%) commands narrowed.