- Jefferies (based on CNBC)
The USD/CAD currency pair declined yesterday, making half way to the 1.19 level. Immediate support was easily pierced, while the 200-day SMA succeeded in stopping the Greenback from falling deeper. However, it might lack the strength to do so again today, as the US Dollar is expected to plunge for the third consecutive day and close trade around 1.19. A slump towards the weekly S2 at 1.1829 is also possible, if the Fundamentals turn out to be much worse than anticipated. Technical studies retain mixed signals, unable to bolster any possible outcome.
Today only 59% of traders are long the Buck (previously 63%), whereas the percentage of sell orders increased from 72 to 85%.