- Mizuho Securities (based on Reuters)
Due to a decline in commodity prices, the unlikely scenario played out on Tuesday, as the USD/CAD currency pair recovered from its intraday losses and put the weekly PP to the test. Nevertheless, technical studies retain their bearish signals in the daily timeframe, suggesting that the bias could turn bearish again. The support and resistance levels remain the same, the weekly S1 is to limit any possible losses, whereas the weekly PP is expected to prevent the pair from edging higher; therefore, the pair is left with a trading range from 1.3750 to 1.3880, unless the FOMC minutes surprise.
Bearish traders' sentiment returned to its Monday's level of 49%, whereas the share of purchase orders declined from 64 to 61%.