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"There's nothing fundamentally different going on in Canada to suggest we should be seeing a significant rebound. We're still seeing sluggish, I would call it, employment growth in Canada. The inflation trend is still very soft overall."
- TD Securities (based on Bloomberg)
Pair's Outlook
This week USD/CAD prolonged the decline, falling as low as 1.0857—the lowest level since the beginning of the year. However, the long-awaited rebound began yesterday, and right now the pair is trying to breach the 100-day SMA at 1.0974. Even though the daily technical indicators are bearish, we expect the pair will most likely continue the up-trend and test the weekly PP at 1.1002, which is a substantial resistance level.
Traders' Sentiment
The sentiment towards USD/CAD has improved since yesterday, as right now 74% of the market participants believe that greenback's value will increase. As for the orders placed 100 pips from the spot, 54% of them are set to buy the U.S. Dollar.
© Dukascopy Bank SA