USD/CAD pushed through 1.0609/1.0590

Last week the currency pair faced a formidable resistance area at 1.0609/1.0590 that we expected to withstand the bullish assault. However, USD/CAD managed to overcome the supply zone formed by the up-trend resistance line and the July high and is currently targeting 1.0701/1.0693, the level of the weekly R2, monthly R1 and, most importantly, of the 2010 highs.

The distribution between the bulls and bears remains more or less the same as last week. The former are in the overwhelming majority—they constitute 73% of the market. The advantage of buy orders (59%) over the sell ones (41%) is much less pronounced, but is nonetheless expanding.