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- Royal Bank of Canada (based on Reuters)
Pair's Outlook
The greenback breached the weekly R3 at 1.0944 for a second straight day; however, it was not able to sustain its strength and slipped below this resistance level. Nonetheless, the pair seems well supported by weekly R2 at 1.0915, this level also marks the highest trading levels through May. We suspect the pair trading in the range from the weekly R2 (1.0915) and monthly R1 (1.0962), this sideways trend is supported by the daily technical indicators that are neutral.
Traders' Sentiment
The SWFX traders are getting less and less convinced that the greenback is going to appreciate relative to the Canadian peer; but overall the bulls are still in a distinct majority, as they take up 62% of the market, and this is a significant advantage over the bears (38%).
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