USD/CAD nosedives

The pair ignored all of the nearby supports yesterday, but most importantly settled beneath the major up-trend line and the 200-day SMA that had to remain intact for the bullish outlook to be valid. Consequently, the decline may not halt until the 2008 lows at 0.9803 are reached. The first obstacle on the way there is 1.0185/51, the zone formed by the monthly S2 and weekly S3.

The difference between the amounts of long (70%) and short (30%) positions on USD/CAD contracted compared to the data in the previous report, but the overall sentiment still remains strongly bullish. At the same time the number of buy orders managed to grow from 66% to 71%.