© Dukascopy Bank SA
- Klarity FX (based on Reuters)
Pair's Outlook
The current trading level is critical for the pair, since with today's drop it has reached the lower boundary of the bullish channel that formed at the beginning of July. A slide below the monthly PP, 55-day SMA and up-trend's support line could spur a sell-off towards the 100-day SMA and monthly S1 around 1.11. However, we expect the current support levels to hold and the USD/CAD cross to rebound gradually.
Traders' Sentiment
Despite the significant changes in the pair's value the sentiment with respect to USD/CAD has not changed much as the traders' stay distinctly bullish—72% of all open position are long, though five days ago they took up 75% of the market.
© Dukascopy Bank SA