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"We're looking a little bit overextended after the (U.S. dollar) move up we've seen...so I wouldn't be at all surprised to see a little bit of consolidation."
- Shaun Osborne, TD Securities (based on Reuters)
Pair's Outlook
Right now we see even more bullishness in the technical indicators on daily and monthly charts than yesterday, but USD/CAD refuses to follow the signals and is closing in on the 1.0496 that is a fraction higher than the key support at 1.0466/47. Should the pair slip down to it, there should be enough demand to keep the price afloat and subsequently reignite a recovery.
Traders' Sentiment
The recent debasement of the U.S. Dollar discouraged a small portion of bullish traders, decreasing the share of long positions in the market to 70% from 74% the day before. It is also worth mentioning that the Canadian Dollar continues to be the least popular currency relative to its major counterparts, being acquired in merely 29% of trades.
© Dukascopy Bank SA