- National Bank of Canada (based on Bloomberg)
The US Dollar suffered serious losses against its Canadian counterpart on Wednesday, amid a sharp increase in oil prices and the BoC leaving its key rate unchanged. The USD/CAD currency pair is now only 45 pips away from the nearly two-year support line. Even though this up-trend is reinforced by the weekly S1, according to technical studies, a possibility of it getting pierced exists. At the same time, the 200-day SMA, along with the monthly S1, form a rather strong resistance cluster just on top of the 1.33 major level. In case bulls do prevail through the day, the pair is likely to remain caged between its current support and resistance levels.
There are now 62% of traders holding long positions (previously 55%), while the number of orders to purchase the Buck slid from 60 to 43%.