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- Commerzbank (based on Reuters)
Pair's Outlook
Even though the Greenback suffered a slight loss on Friday and erased Thursday's gains against the Canadian counterpart, a continued decline in oil prices caused the USD/CAD pair to open with a bullish gap today. The Buck, however, remains subject to weakness and is likely to fall deeper down over the day. The closest level to limit the losses is located at 1.2858, namely the weekly PP, while a much stronger cluster is formed by the Bollinger band, the weekly and the monthly S1s just on top of the 1.27 major level. Meanwhile, technical studies are bolstering the possibility of the bearish scenario with their signals.
Traders' Sentiment
Bulls are now barely outnumbering the bears, as 51% of all open positions are long (previously 57%). The portion of orders to buy the US Dollar inched one percentage point up, taking up 52% of the market.
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