- Bart Wakabayashi, State Street (based on CNBC)
The USD/CAD currency pair remained relatively unchanged on Friday, edging 14 pips lower, despite a strong reading of the US GDP. The main reason for this decline was a rebound in crude oil, which managed to outweigh the effects of the US economic data release. Nevertheless, medium and long term technical indicators are giving bullish signals, suggesting the Greenback could regain the bullish momentum and partially negate last Thursday's losses. A rally beyond 1.3625 is doubtful, as the weekly PP, the monthly S1 and the 100-day SMA form a strong resistance around that area. At the same time, the Bollinger band is supporting the Buck just on top of the 1.35 major level.
Bulls and bears broke out of the equilibrium, as 54% of traders are now long the Buck. The share of buy sell orders increased from 50 to 65%.