- Bank of New Zealand (based on AFP)
On Tuesday, the USD/CAD currency pair suffered substantial losses, amid weaker-than-expected US fundamentals. The pair even dropped below the target 1.2460 level, as it settled at 1.2415. The American Dollar has fallen quite close to the 100-day SMA, which should cause the Greenback to regain the bullish momentum. The weekly PP, on the other hand, is unlikely to stop the rally; thus, the target is around the 1.25 psychological level. Technical studies retain their bullish signals, bolstering the possibility of appreciation today.
Bears gained numbers again, as 59% of traders now have a negative outlook towards the US Dollar. The number of purchase orders also declined, from 51 to 42%.