- Loretta Mester, Federal Reserve (based on Bloomberg)
On Thursday the Greenback experienced a corrective rally against the Loonie, with volatility limited by the weekly S2 from the downside and the weekly S1 from the upside. The USD/CAD is expected to edge higher for the second day in a row, if bulls manage to hold the pair above the immediate resistance—the weekly S1. Meanwhile, yesterday's gains might also be erased, as there is sufficient space for a 100-pip decline, namely towards the tough support cluster around 1.3625.
Market sentiment is rather neutral, as only 51% of all open positions are long (previously 52%). At the same time, the portion of sell orders takes up more than three quarters (76%) of the market.