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- John Kim, Portfolio Manager, Aston Hill Financial (based on Bloomberg)
Pair's Outlook
The US Dollar touched the upper trend line of the long term channel up pattern against the Canadian Dollar. The currency exchange rate has been trading in the boundaries of the pattern since the beginning of May. Due to that it is most likely that the currency pair is set to begin a cycle of downward movement. It has to be noted that in the past the rate has always changed its direction against the pattern's trend lines only after it had closed the day's trading session at the trend line. Fluctuations near the trend line are still most likely.
Traders' Sentiment
Traders have decreased their bearishness, as 62% of open positions are short on Friday, compared to 68% on Thursday. In the meantime, pending commands remain neutral/bullish, as 54% of them are to buy the Greenback.
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