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"The market will focus on the Fed's tapering of stimulus, unless there's a clear signal from the Fed that it will not be on the cards this year."
- State Street Global Markets (based on Reuters)Pair's Outlook
The weekly R1 level at 1.05, currently acting as the support, was more than enough to initiate a rally up to 1.0576 today that seemed quite distant before. This reinforces the bullish outlook we had on USD/CAD, while daily and monthly technical studies speak in favour of the more expensive U.S. Dollar in the future as well. Additional resistances are at 1.0631 and 1.0672/58.
Traders' Sentiment
Just as the Japanese Yen, the Canadian Dollar was also subject to an increase in the level of popularity among SWFX traders. Considering all the loonie currency pairs, 31% of positions there favour its appreciation. Yesterday this measure of traders' preference stood lower, at 27%, but the general sentiment nonetheless, remains strongly bearish.
© Dukascopy Bank SA