© Dukascopy Bank SA
- BMO (based on CNBC)
Pair's Outlook
The US Dollar barely managed to outperform the Loonie on Thursday, as trade closed with a 27-pip rally over the day. The bullish momentum now seems to be fading, with the downside risks higher again. Nonetheless, the 1.2750 level remains the ‘phantom support', now also reinforced by the weekly S2, the Bollinger band and the monthly S1. Due to a poor reading of the Canadian fundamentals today, the USD/CAD is bound to appreciate, with the immediate resistance located at 1.2886, namely the weekly S1, while the 1.29 mark is also a solid psychological level that can limit the gains.
Traders' Sentiment
Market sentiment slightly improved over the last 24 hours, as 57% of all open positions are now long. At the same time, the number of orders to acquire the US currency declined from 57 to 51%.
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