- Commerzbank (based on CNBC)
Although the US Dollar pierced its descending channel's support line on Friday, trade still opened within the pattern's borders today. The mentioned support line is now weaker, but is reinforced by the monthly S1, the 200-day SMA and the Bollinger band, which should keep the USD/CAD above 1.33 level. Furthermore, the pair was unable to edge below the monthly S1 on Friday, where demand is strong; thus, we should see the exchange rate edge higher. The closest level to limit the gains is located right on top of the 1.34 psychological mark, namely the weekly PP. Volatility, on the other hand, could even stretch higher.
Traders' sentiment remains bullish at 56%, compared to 57% on Friday. At the same time, the portion of orders to acquire the US Dollar lost 14 percentage points, having fallen to 41%.