- Bank of Tokyo-Mitsubishi (based on WBP Online)
The USD/CAD currency pair misbehaved on Thursday, as it plunged below the expected target of 1.30. Today the Buck is likely to post another decline against its Canadian counterpart, as it received impetus from the overwhelmingly positive Canadian Retail Sales earlier today. The pair, however, is struggling to breach the immediate support at 1.2935, represented by the Bollinger band. The second support area is located around 1.2930, but is unlikely to be reached today. Meanwhile, technical indicators are in favour of the bearish scenario, but we should not rule out the possibility of the nearest resistance, namely the weekly S2, at 1.2996 getting pierced.
Bulls grew stronger today, with 60% of traders being long the Buck. At the same time, the share of purchase orders slid from 60 to 53%.