— Jamie Saettele, Daily FX
Pair's Outlook
Commodities continued to weigh on the Loonie, which allowed the US Dollar to climb 66 pips higher. Although the USD/CAD was unable to climb over the 1.34 mark yesterday, another spark of bullish momentum today would make that happen. The nearest resistance ahead of that handle is unlikely to limit the gains, but the second cluster is expected to succeed, namely the weekly R2, the monthly R1 and the down-trend circa 1.3485. Meanwhile, technical indicators keep giving bullish signals in the weekly timeframe, but being that the pair is now in close proximity to the descending channel's resistance line, the exchange rate is expected to bounce back by the end of the week.
Traders' Sentiment
Market sentiment remains bearish, now at 58%, compared to 55% previously. The share of sell orders inched up from 52 to 56%.
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