- JPMorgan (based on CNBC)
The US Dollar misbehaved yesterday, as it edged down rather than up. The resistance cluster around 1.2250 proved to be strong enough to turn the tide for the USD/CAD. As a result, the Greenback dropped down to 1.2166, but settled at 1.2206. Nevertheless, the Buck is likely to rise back up again today, although technical studies keep giving mixed signals. The previously mentioned resistance cluster is now also bolstered by the Bollinger band, and will be even harder to breach. Strong US fundamentals are required to push the US Dollar higher, while further slump is not out of the question.
Market sentiment weakened, as 54% of all positions are now long, while the share of purchase orders now takes up 62% of the market.