- Aspen Trading Group (based on Bloomberg)
The American Dollar climbed more than 100 pips higher against its Canadian counterpart, amid hawkish comments of Fed officials on Monday. As a result, the USD/CAD currency pair pierced the first level of the immediate resistance cluster—the monthly S2. This level is now acting as the closest support, with the exchange rate once again located within the borders of the descending channel. Meanwhile, the nearest resistance is located at 1.3110, namely the weekly PP. A possibility of the pair to stay range bound between the monthly S2 and the weekly PP is rather high, due to the absent of impetus and mixed technical indicators in the daily and the weekly timeframes.
Although not as strong as yesterday, but traders' sentiment remains bullish at 54%. The share of buy orders lost 30% points and slid to 26%.