USD/CAD approaches key resistance

USD/CAD has just confirmed 1.0527/10 as the nearest support and is thereby well-positioned for extension of the up-leg. However, the resistance at 1.0624/05, which consists of the Jul high and the monthly R2, poses a real threat to the current recovery. A previous attempt of the pair to climb higher (on Jul 5), resulted in a sell-off that took the price down to 1.0182, the major up-trend support line that has been in force since the second part of 2012.

The bulls have enhanced their dominance over the bears during the last 24 hours. While yesterday they were taking up 72% of the market, today already 75% of all the positions are long on the currency pair, even though the U.S. Dollar became more expensive.