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Following a strong rebound from 0.8831, the currency pair penetrated the 200-hour SMA while fluctuating between two converging trend-lines. Accordingly, the probability of a decline is increasing with the progression of time, since the rising wedge is presently being formed. For the time being the market is likely to continue respecting the support trend-line at 0.9012, but we should be aware of the existing risks.
In the meantime, according to SWFX traders' sentiment, only 26% of market participants are expecting the loonie to soften—74% of positions are long.
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