- Mizuho Securities (based on Reuters)
The American Dollar remained relatively unchanged against the Loonie on Monday, having edged only 20 pips lower. Today, as a commodity-based currency, the CAD was boosted after a deal on oil output freeze was struck, consequently resulting in an increase in oil prices. The USD/CAD is now likely to follow the technical indicator direction and weaken. The nearest support is represented by the weekly S1, while a much tougher cluster resides on top of the 1.36 level. However, there is still room for the Greenback to recover and take another shot at touching the weekly PP at 1.3882.
Market sentiment is equally divided between the bulls and the bears, while the share of purchase orders increased from 43 to 64%.