- Sumitomo Mitsui Asset Management (based on CNBC)
Even though the US Dollar appreciated against its Canadian counterpart last Friday, the pair might still encounter some obstacles before fully regaining the bullish momentum. Technically, we should see a rally towards 1.4327 in the medium term, namely the point where the descending channel began to form. However, the Greenback is first required to overcome the monthly S1 at 1.3311, followed by another tough resistance around 1.3360, represented by the 200-day SMA and the weekly R1. According to technical studies, the exchange rate might fall back below 1.32, with the weekly PP at 1.3184 providing immediate support.
Traders' sentiment remains neutral, as 51% of all open positions are long. The share of purchase orders increased from 25 to 53%.