- BNP Paribas (based on Reuters)
The US Dollar managed to appreciate against its Canadian counterpart yesterday, almost negating two-week losses. However, the USD/CAD pair was unable to overcome the 1.2150 area, as it failed to do so in the past two weeks. The weekly R1 is providing formidable support and is likely to push the Greenback higher today, with the Bollinger band as the closest resistance. The cluster around 1.2250 provides stronger resistance, while technical indicators are giving mixed signals.
Although not as strong as yesterday, but market sentiment remains bullish with 56% of positions being long. The buy/sell command equilibrium has been broken, as 61% of orders are to buy the Buck.