- Societe Generale (based on CNBC)
Despite all expectations, the US Dollar declined against its Canadian counterpart at the end of last week. Although the USD/CAD experienced serious volatility to the upside, the end-result was still negative, but with the weekly PP limiting the losses. Technical studies keep showing bullish signs, but the weekly PP now acts as an immediate resistance, and is unlikely to allow the given pair to rally. Therefore, the closest support at 1.2402, represented by the 100-day SMA, should limit the losses today.
Bears keep gaining numbers, as 57% of traders now hold short positions. Meanwhile, purchase orders declined 11 percentage points, they now account for 35% of the market.