USD/CAD remains side-lined

USD/CAD remains indecisive—the last two weeks it has been fluctuating around the 23.6% Fibonacci retracement of the January rally. Nevertheless, the studies on the daily and weekly time-frames are united in saying this is only a temporary weakness before the pair gains traction. In such a case the U.S. Dollar will be expected to have a hard time rising beyond Jan high at 1.1224, as it will encounter the up-trend resistance line.

The bullish with respect to USD/CAD sentiment strengthened even more, since the distribution between the open long and short positions became even more skewed in favour of the former. Now they take up as much as 61% of the whole market.