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– Doug Porter, BMO Capital Markets (based on Reuters)
Pair's Outlook
A group of resistances prevented the USD/CAD currency pair from advancing too much on Thursday, but the Buck still managed to reclaim the 1.33 level. The Greenback still has a relatively strong resistance cluster on its path, which could prevent a surge beyond 1.34. On the other hand, the given supply area could be sufficient to trigger USD-selling, in which case the cluster circa 1.3130, formed by the monthly S1, the weekly PP, the 200-day SMA and the ascending channel's support line, is expected to limit the losses. Technical indicators also suggest the US Dollar is to decline today, as they are giving bearish signals in the daily timeframe.
Traders' Sentiment
Bears are now in the majority, taking up 52% of the market (previously 49%). The number of sell orders added 18 pips, having risen to 55%.
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