- IG (based on Business Recorder)
The US Dollar took advantage of falling oil prices and outperformed the Canadian Dollar on Wednesday. The USD/CAD currency pair surged more than 150 pips and retook the 1.32 major level, indicating that a retest of the resistance trend-line of the descending channel is possible. This channel's border is also reinforced by a group of other important levels, namely the weekly R1, the monthly S1; the 20 and the 200-day SMAs. Technical studies, on the other hand, imply that the bearish outcome is more probable. In this case the price might return to the 1.31 major level, which is bolstered by the weekly PP and the monthly S2.
Today only 52% of traders are long the US Dollar (previously 57%). Meanwhile, the portion of orders to sell the Buck slid from 72 to 64%.