- Eishi Wakabayashi (based on Bloomberg)
The US Dollar declined against its Canadian counterpart more than anticipated, as the monthly R1 was pierced and the pair closed trade only in front of the weekly PP. Even though the weekly PP is providing support today, the Loonie is likely to push the USD/CAD lower towards the monthly pivot point. Poor US fundamentals might also cause another sharp decline, forcing the Greenback to reach the 1.32 major level, also reinforced by the weekly S1. Technical indicators, however, are suggesting the pair is to rebound today.
The share of bears returned to last Friday level of 73%, compared to 70% yesterday. Meanwhile, the portion of commands to acquire the US currency edged higher from 37 to 71%.