- Westpac (based on FXStreet)
The resistance in face of the weekly PP at 1.3775 proved to be too difficult to breach, thus, the USD/CAD currency pair edged lower on Monday. However, the boost that Loonie received was insufficient to cause the exchange rate to drop beyond the nearest support. The same area, namely the cluster of supports around 1.3630, is to prevent the Greenback from sustained sharper losses. Even though technical studies keep pointing south-ish, we still expected to Buck to rebound and retest the weekly PP; unless disappointment in fundamentals will extend the bearish bias.
Market sentiment reached a perfect equilibrium today, but the share of purchase orders declined from 56 to 39%.