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- SLJ Macro Partners LLP (based on Bloomberg)
Pair's Outlook
The USD/CAD rebounded upon reaching the support cluster at 1.3150, causing the rally to exceed expectations. The immediate resistance was pierced and Tuesday's loss nearly erased. However, despite bullish technical indicators, the US Dollar is still expected to weaken today. Losses should be limited by the weekly PP and 20-day SMA around 1.3235, while the 1.32 major level is to provide another support in case the cluster is breached. Nevertheless, the US Dollar has been rallying against the Loonie for almost two months now, with heavier setbacks before.
Traders' Sentiment
Bears keep growing stronger, as 73% of all positions are now short. The portion of purchase orders inched up from 64 to 66%.
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