- Citi (based on CNBC)
As was anticipated, the US Dollar weakened against the Loonie at the end of the previous week, but with losses limited by the 21-month up-trend right on top of the 1.32 mark. The given support line is expected to provide sufficient demand to cause the USD/CAD to rebound, even though technical studies are unable to confirm that. The closest resistance is located around 1.33, represented by the weekly pivot point, the 200-day SMA and the monthly S1. On the other hand, a breach of the up-trend is possible, but the current descending channel's lower border at 1.3180 should limit the dips, even if volatility stretches further down.
Only 55% of traders are now long the Greenback, whereas the share of all of all open orders to sell the USD surged 7% points, up to 69%.