- Craig Erlam, OANDA (based on Reuters)
Yesterday, the US Dollar appreciated against its Canadian counterpart. However, the gains were limited by the monthly pivot point, and in the end the pair settled at 1.2592. Today we expect the Greenback to slide down, as suggested by the bearish daily technical indicators. Immediate support rests at 1.2577, represented by the 55-day SMA, but a slide may well extend down to 1.2540, where the weekly PP resides.
The outlook of SWFX market participants towards the Greenback improved, as the longs returned to their previous level of 74%. At the same time, the buy orders are now in a majority, taking 53% of the market.