- High Frequency Economics (based on Bloomberg)
The Greenback behaved according to expectations, as it plunged against the Canadian Dollar. Immediate support was breached, and the USD/CAD pair closed trade just above the 1.20 level. Technical studies are giving mixed signs today, while we expect the Buck to weaken again. A rather strong support cluster is located around 119.58, which should prevent further losses. However, if the US fundamentals disappoint again, a fall beyond 1.19 is not out of the question.
More traders now have a positive outlook towards the US Dollar, as 63% of all positions are long (previously 44%). The number of buy orders lost 26 percentage points, now taking up 28% of the market.