USD/CAD tests 50% Fibo

USD/CAD has just touched upon an important support level at 1.0916/1.0898, which consists of the 50% Fibo and the 55-day SMA. Should this demand area stand its ground, as suggested by the weekly technical indicators, the currency pair will preserve its long-term bullish outlook. Conversely, there will a risk of a dip back down to the 2010 highs at 1.07.

Although the sentiment was already explicitly bullish yesterday, even more people decided to go long the U.S. Dollar—the share of long positions soared from 64% up to 71%. Moreover, it must be noted that USD/CAD is currently in a dense supply area—68% of orders are to acquire the buck against the loonie.