- Scotiabank(based on WBP Online)
Although the USD/CAD declined, losses were limited by the April high at 1.2667, even forcing the trade to close at 1.2709. The US Dollar is likely to edge lower for the second day, as the weekly R1 keeps providing solid resistance. From below the April high keeps limiting the currency pair's losses, while the monthly R1 is providing additional support slightly lower. In the daily timeframe most of technical instruments are providing signals to purchase the Greenback, despite our bearish outlook.
The bearish sentiment returned to its Tuesday's level of 68%. Meanwhile, the share of purchase commands also declined, as only 45% of them are to acquire the Buck (previously 55%).