- TD Securities (based on FXStreet)
The USD/CAD behaved almost in line with expectations. The pair edged down yesterday, while downside volatility stretched out to 1.1940. Nonetheless, the tough support cluster around 1.20 held its ground, forcing the Greenback to settle at 1.2039. The US Dollar is likely to plunge today, finally penetrating the support barrier, despite current hike towards 1.21. A fall down to 1.19 is possible if the US fundamentals disappoint too much. Meanwhile, technical indicators are showing bearish signs, bolstering the negative bias.
Market sentiment has reached a perfect equilibrium. At the same time, the share of purchase orders added six percentage points. They now take up 68% of the market.