- Westpac (based on FXStreet)
BoC's decision to leave the overnight interest rate unchanged reinforced the Loonie on Wednesday, causing the USD/CAD to drop to the 1.45 level. Nevertheless, technical indicators shifted to the bullish side today, implying the Greenback might climb back over the 1.46 area. The Bollinger band and the weekly R1 form a resistance around the 1.47 mark, whereas immediate support is represented by the monthly R2 and the weekly PP circa 1.44. However, the bearish momentum has been prevailing since the beginning of the week and might take over the market today as well.
Bearish traders' sentiment returned to its Tuesday's level of 72%, while the number of purchase orders declined from 70 to 46%.