— IHS Markit (Business Recorder)
Pair's Outlook
Ever since the USD/CAD pair touched the ascending channel's support line last month, it has been steadily climbing up. At the end of the previous week the US Dollar approached the channel's upper boundary, thus, there is little room for another leg up. The Bollinger band is bolstering the resistance line and the RSI indicator suggests a U-turn is due, even though overall signals remain bullish. The Greenback is expected to close in the red zone, with the nearest support being only under the 1.36 mark, formed by the weekly PP and the 50% Fibo level. The exchange rate is expected to hold above 1.3620.
Traders' Sentiment
Trader's sentiment remains distinctly bearish, as 70% of all open positions are long (previously 69%). At the same time, 78% of all pending orders are to sell the American Dollar, up from 62% on Friday.
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