- Capital Economics (based on WBP Online)
The Greenback overperformed on Monday, as it advanced further than anticipated versus its Canadian counterpart. Moreover, the USD/CAD almost reached the weekly R1 at 1.2796, but, nonetheless, still stabilised at a three-month high. Losses are likely to occur today, although we will doubtfully see a gradual decline, as the US Dollar remains strong after the Greek bailout deal. The nearest support rests only at 1.2679, while technical indicators retain their distinctly bullish signals, unable to confirm the bearish scenario.
Bears keep gaining more ground, as 73% of traders now hold short positions. The share of orders to buy the US currency lost 19% percentage points, now accounting for 36% of the market.