- IG Securities (based on Business Recorder)
The USD/CAD pair returned within the borders of the descending channel yesterday, with the weekly PP providing sufficient support to limit the losses. This pivot point could also cause the US Dollar to rebound today, which would imply another breach of the channel's resistance line; therefore, our outlook remains bearish. Meanwhile, technical studies are bolstering the possibility of the negative outcome. The closest area to keep the pair from falling deeper lies just below the 1.31 major, namely around 1.3080, represented by the monthly S2 and the weekly S1; a drop lower is possible, but doubtful.
Market sentiment shifted to the bearish side, with 53% of traders now holding short positions, compared to 49% previously. At the same time, the number of orders to buy the US Dollar edged up from 53 to 61%.