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"The U.S. dollar's lighter across the board. I'm cautiously optimistic on risk. Dollar-Canada is still a sideways trade."
- Jack Spitz, National Bank of Canada (based on Bloomberg)
Pair's Outlook
USD/CAD inched lower yesterday, falling slightly below 1.0214 (55-day SMA). However, if the bearish trend commences, investors might take profits at 1.0168 (PP Weekly). A breakout here would clear the path towards1.0099 (200-day SMA) and 1.0043 (61.80% Fibo) in case bearish momentum gains strength. To maintain the bullish trend, the pair has to close above the 55-day SMA (1.0198).
Traders' Sentiment
The share of market participants, who have acquired the US dollar against the Canadian dollar, has not changed for two days in a row as 68% of currency traders keep long positions, while 32% of market participants expect the pair to decline. Pending order allocation suggests that 76% of market participants expect the rally to continue.
© Dukascopy Bank SA