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"The reaction to Governor Poloz's dovish speech and follow-through in the Asian and European session suggest there is pent-up demand to increase already short Canadian dollar positions."
– Scotiabank (based on Reuters)
Pair's Outlook
USD/CAD has gained yesterday and it traded near weekly R1 at the close; moreover, it has continued to appreciate today and it has reached February's high and monthly R1 at 1.1192/97. The pair found a strong resistance at that level, we also have to take into account that at 1.1226 there is more than a three year high. However, we expect a bullish action from this pair and that is also supported by majority of technical indicators.
Traders' Sentiment
The sentiment among the SWFX market participants has remained at the same level as yesterday – 67% are bullish. Concerning the orders placed 100 pips from the spot, there are now significantly more commands to sell — 65% after yesterday's 37%.
© Dukascopy Bank SA