- Bart Wakabayashi, State Street (based on CNBC)
The Greenback was supported by the lower Bollinger band yesterday, which helped the USD/CAD to remain relatively unchanged and above the 1.35 level. Today this support shifted slightly lower, suggesting we might see the pair fall below the psychological level of 1.35. However, according to daily technical indicators, the Buck could trade in limbo through all of the day for the third consecutive time. The base case scenario, nonetheless, is a movement to the downside, which is to be stimulated by the Canadian GDP results. Furthermore, a fall towards the weekly S1 at 1.3391 is possible, but doubtful.
Traders' sentiment is quite close to being neutral, as 53% of all open positions are long and the remaining 47% are short. Meanwhile, the number of purchase orders soared from 35 to 74%.