- Westpac (based on FXStreet)
The Canadian Dollar overperformed on Wednesday, as the immediate support was breached, causing the USD/CAD to drop below 1.37. The pair now faces a tough support cluster, represented by the weekly S2, the monthly S1 and the 100-day SMA, the final obstacle before the ten-month up-trend is retested. However, daily technical indicators insist that the Greenback is to weaken against the Loonie for another day, despite the strong demand area. Meanwhile, the weekly S1 is likely to prevent the Buck from climbing over 1.3750, in case the pair manages to rebound.
Bulls are now outnumbering the bears by 4% points, whereas the portion of orders to acquire the Buck declined from 61 to 31%.