- IG Securities (based on Business Recorder)
For the third consecutive day the US Dollar weakened against the Canadian currency yesterday, but as mentioned in the previous report, with the bearish momentum fading. The bearish development keeps diminishing each day, with upside risks now being present. The closest resistance is now represented by the Bollinger band, while the second target is the weekly S2, located at 1.2772. Nevertheless, daily aggregate indicators are still giving mixed signals, implying that the cluster circa 1.2635, namely the monthly S1 and the weekly S3, could also be reached if the BoC's governor is dovish today.
Market sentiment improved in the past 24 hours, as 64% of traders are now long the Buck, compared to 61% on Wednesday. Meanwhile, the share of orders to purchase the US Dollar declined from 61 to 55%.