- Capital Economics (based on WBP Online)
The USD/CAD managed to recover from its daily low and post a 22-pip rally over the previous day. The pair refuses to abandon its bullish trend, without even having retested the up-trend for almost seven weeks. The Greenback is likely to weaken against its Canadian counterpart, with losses limited by the short-term up-trend at 1.4515. The pair's bullish trend is intact, therefore, even a loss today does not imply a trend reversal. At the same time, technical studies retain mixed signals, suggesting the Buck could remain relatively unchanged against the Loonie, posting mild gains.
Bearish traders' sentiment returned to its Monday's level of 73%, whereas the share of purchase orders inched up from 54 to 70%.