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- Marc Chandler, BBH (based on 4-traders)
Pair's Outlook
The Loonie strengthened against its US counterpart yesterday, completely ignoring the immediate support cluster. This time the USD/CAD faces a much stronger demand area, now formed by the weekly S1, the 100-day SMA and the Bollinger band, located just under the 1.32 major level. Meanwhile, technical indicators are also in favour of the decline, in comparison to yesterday's mixed signals. In case today's immediate support cluster is breached, the next target will be not only the 200-day SMA at 1.3078, but also the eight-month up-trend, not to mention them both being reinforced by the weekly and the monthly S2s.
Traders' Sentiment
There are only 54% of traders holding long positions today (previously 60%), while the share of purchase orders surged from 55 to 65%.
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