- BNP Paribas (based on Reuters)
At the end of the previous week the Greenback extended its rally against the Canadian Dollar, barely managing to break through the immediate resistance. Today the USD/CAD faces an obstacle in face of the weekly pivot point at 1.3775 from the upside, just in front of the opening price. Supply at this level, along with bearish technical indicators, suggest the pair is to weaken. The area to limit the dips ranges from 1.3613 to 1.3643, represented by the 100-day SMA, the monthly and the weekly S1s, but a drop that low is doubtful, unless an increase in Oil prices boosts the Loonie substantially.
Bulls are outnumbering the bears by only 2% points, whereas the portion of orders to acquire the Buck increased from 24 to 56%.