- Bank of Nova Scotia (based on Bloomberg)
The Canadian Loonie outperformed its US counterpart on Thursday, amid an increase in oil prices. The USD/CAD is still driven by the that commodity rally, with the pair's weakness persisting through today. The weekly S1, the 20-day SMA and the monthly R1 form a rather strong support around the 1.4165 level, with the 1.41 major level providing some additional support. Nonetheless, technical studies contradict with our bearish prospects, as they show bullish signs in the daily timeframe, suggesting a retake of the 1.43 level is possible.
Even though bulls pushed forward, bears remain in the majority, taking up 61% of the market. Meanwhile, sell orders are outnumbering the buy ones by only four percentage points.