- Canadian Imperial Bank of Commerce (based on Bloomberg)
A decline of oil prices on Monday caused the Loonie to negate all gains and give the US Dollar the upper hand. The pair climbed back above the 1.28 level, making it the third consecutive rally. The Buck is expected to prolong its bullish momentum for the fourth time in a row, but with the 1.29 mark remaining intact, as it is bolstered by the 55-day SMA and the monthly PP. At the same time, the weekly PP is now providing immediate support, preventing the Greenback from edging lower. Nevertheless, we should not rule out the possibility of a slump back under 1.28, as technical studies in the daily and the weekly timeframes are giving bearish and distinctly bearish signals, respectively.
Today 56% of all open positions are long (previously 59%), while the number of orders to sell the US currency inched up from 36 to 57%.