- Aozora Bank (based on Market Watch)
The USD/CAD surprised with its performance, as it stabilised at the highest in six weeks yesterday. Today the Greenback opened just on top of the monthly R1, which should provide sufficient support and push the US Dollar higher against its Canadian counterpart. Gains are likely to be limited by the cluster around 1.3380, represented by the weekly R1 and the Bollinger band. Technical studies are supporting the possibility of the positive outcome, but weak US fundamental data could still cause a decline; the weekly PP, however, should hold the losses in case those occur.
Bearish market sentiment remains unchanged at 64%, while nearly three quarters of all orders are to sell the US currency.