- Bank of Tokyo-Mitsubishi-UFJ (based on Reuters)
Although the US Dollar was able to outperform its Canadian counterpart last Friday, from a technical perspective, the pair is likely to undergo a correction today. The three-week trend-line is providing immediate resistance and should cause USD/CAD to experience a mild decline. Furthermore, technical studies also imply the bearish momentum is to prevail today; however, the weekly PP and the 55-day SMA form a substantial support around 1.3880 and could cause the Greenback to even remain relatively flat circa the 1.39 psychological mark.
Traders' sentiment remains unchanged, with bulls taking up 52% of the market, while the share of buy orders dropped from 63 to 40%.