© Dukascopy Bank SA
"Trudeau's made it clear that he has some aggressive spending plans to boost the economy, and it's not necessarily well liked by markets when government plans to spend their way out of trouble."
- BMO Capital Markets (based on Reuters)
Pair's Outlook
USD/CAD appears to have completed its bullish correction at the monthly S1, and soon we should see a re-test of the 100-day SMA at 1.2925. Below the moving average the pair will be targeting 1.2814, namely the monthly S2. The sell-off, however, has little chance of going on for too long, as 350 pips below the spot we have a combination of the 15-month up-trend and the 200-day SMA. A jump over 1.3060 will alleviate immediate downside pressure, and in this case the price will likely recover back to the September high.
Traders' Sentiment
SWFX traders still fail to agree on the prospects for USD/CAD: 52% of positions are long and 48% are short. A similar picture is with the pending orders: 50% to buy and 50% to sell the Greenback.
© Dukascopy Bank SA