- Rabobank (based on CNBC)
The US Dollar managed to rebound on Friday, but the gains were not as large as anticipated. The USD/CAD managed to reach the nearest resistance level, but was pushed back and stabilized only at 1.2450, unable to erase Thursday's losses. Nevertheless, we expect the Greenback to climb up again today, despite technical indicators emitting mixed signals in the short and medium timeframes. The weekly R1 and the Bollinger bend act as the closest resistance cluster, but the given currency pair will lack the strength to reach that high and most will probably settle close to 1.25.
Market sentiment remained unchanged, as only 42% of all positions are long. The number of purchase orders increased from 42 to 45%.