- Strong Petroleum (based on Reuters)
The American Dollar outperformed its Canadian counterpart for the seventh consecutive day yesterday, climbing over the 1.42 major level. A surge further would be more difficult, as the Bollinger band and the weekly R1 form a resistance circa 1.4265. At the same time, the monthly R1 is providing support at 1.4124, whereas the weekly pivot point is limiting downside volatility around 1.4050. As a result, the USD/CAD is likely to maintain trade within the borders of the monthly and weekly R1s, while technical studies suggest trade could remain flat near the psychological level of 1.42.
Bearish traders' sentiment barely changed, with 66% of all positions still short. The share of buy orders, however, surged from 57 to 69%.