USD/CAD for now underpinned by 1.0447

Bullish behaviour of USD/CAD seen at the beginning of the week gave way for a strong 100-pip sell-off in the second part. This decline could be potentially stopped by the 2012 high at 1.0447, but a close below this level would most likely imply a move down to 1.0300, the current location of the support line that has preserved its topicality since late 2011.

Judging by the positioning of traders in the SWFX market, an absolute majority (71%) of them are still expecting stronger U.S. Dollar, seeing current weakness simply having a correctional nature. Considering orders, 62% of them are to go long and 38% are to go short the buck.