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[This] "week will set the tone for the remainder of the summer in terms of foreign exchange."
- BNY Mellon (based on Reuters)
Pair's Outlook
The sell-off became considerably more cautious in light of proximity to the falling trend-line and the 100-day SMA, but the down-side risks have not yet been fully eliminated, since the bearish pressure persists. Should this zone give in, the price will be supported by 1.0228 and 1.0200/1.0187 as well, although a reversal is more likely to occur lower, somewhere between 1.0163 (200-day SMA) and 1.0120 (up-trend).
Traders' Sentiment
Despite USD/CAD's tendency to decline lately, an overwhelming majority (72%) of traders are still anticipating a change in the trend, believing that the U.S. Dollar is going to outperform the loonie eventually. In of its crosses there are only 25% of positions that are in favour of a stronger Canadian Dollar.
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