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"The underlying driver is an ongoing U.S. recovery, and net-net that's actually a positive for risk sentiment. As long as we have the reality of an ongoing recovery, it favors risk-taking and more exposure to commodity levered currencies."
- CIBC World Markets (based on Bloomberg)Pair's Outlook
Last week USD/CAD's up-move stalled around 1.0540, but this week and onwards we expect higher trading levels, as suggested by the daily and monthly technical indicators. The nearest serious resistance the pair is likely to encounter is more than 50 pips away north from the spot price, while the interim support is at 1.05. The main medium-term level we consider to be 1.0447—2012 high.
Traders' Sentiment
The distribution between the bulls and bears was not subject to any change over the weekend. Just as on Friday, 74% of traders are bullish and the remaining 26% are bearish towards USD/CAD. Concerning orders, the gap between the buy (55%) and sell (45%) ones narrowed significantly.
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