- BBH (based on FXStreet)
The US Dollar inched higher against the Loonie on Friday, reaching a new six-week high. The USD/CAD is now stuck between the weekly PP, which is supporting the pair from below, and the monthly R1—the immediate resistance. Attempts to pierce the resistance were made, but the Buck was pushed back down towards the opening price, where it remains muted. Friday's rally failed to provide sufficient impetus for the USD to remain above the 1.33 major level, hence, the exchange rate keeps gravitating towards that area. We expect the USD/CAD to trade flat over the day, despite bullish signs.
Market sentiment weakened, as 64% of all positions are short (previously 54%), while the share of buy orders slid from 56 to 30%.