USD/CAD sits at 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Crude is turned down, as is natural gas, 1 to 1.5 percent and that price action is likely to weigh on a currency like Canada, so we expect (the Canadian dollar to weaken) a bit off the C$1.12s back into the middle of the range, C$1.1220 to C$1.1240."
- National Bank Financial (based on Reuters)


Pair's Outlook
USD/CAD has not been the most volatile currency pair in the recent trading days; although, after the current consolidation it could pick up the pace. The short-term target is towards the 1.13 level, the biggest obstacle to reach it is around current trading levels. Moreover, the weekly and monthly technical studies are bullish. The downside risks are limited, because of the Greenback's strength and the substantial support levels around 1.12 (major level, weekly S1).

Traders' Sentiment
An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Loonie. Right now 72% of traders are long the buck, while merely 28% of them believe the currency could fall in price.
© Dukascopy Bank SA

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