- CIBC World Markets (based on WBP Online)
On Tuesday the US Dollar took the upper hand and surged against its Canadian counterpart, amid expectations of a dovish BoC statement the next day. Trade closed on top of the weekly PP, which is now providing immediate support for the USD/CAD. Furthermore, the weekly PP is also located on top of the 1.34 psychological level, bolstering this support area. As a result, the Greenback could soar above the 1.35 mark, where the weekly R1 acts as the nearest resistance, and even put the 20-day SMA and the down-trend around 1.3605 to the test. However, according to technical studies, the USD/CAD might even fall towards the up-trend around 1.32.
Bullish market sentiment returned to its last Wednesday's level of 55%, while the share of purchase orders increased from 42 to 60%.