- Royal Bank of Scotland Group Plc. (based on Bloomberg)
The Greenback's decline against its Canadian counterpart somewhat broke through the target support area, leaving only the lowest level of the cluster, namely the monthly S2, to limit the losses yesterday. With the descending channel's support line pierced, the USD/CAD currency pair is expected to weaken even further, despite the monthly S2 providing immediate support and the Bollinger band and the weekly S2 around 1.30 forming another relatively strong demand area. We expect the exchange rate to stabilise above the 1.30 mark, with a small chance of price closing lower. Technical indicators retain their bearish signals, also implying a decline is to take place today.
Today 59% of traders hold long positions, compared to 54% yesterday. The share of purchase orders added 7% points, rising up to 60%.