USD/CAD attacks 1.0721/01

USD/CAD used 1.0650/38 as a springboard and soared up to the dense supply zone at 1.0721/01. This area is formed by the weekly and monthly R1 levels, 2010 highs and, most importantly, by the up-trend resistance line that has been in force since October. Respectively, probability that buying will persist further is minimal and a dip back to the July high at 1.0609 is considered to be a more likely course of events.

The market remains undecided with respect to the path USD/CAD will take next—53% of positions are long and 47% are short. Speaking of the orders, there has been a notable increase in the portion of the sell ones around the spot—from 50% up to 58%.