USD/CAD to bounce off 1.167

Despite the persistence and energy the bulls have recently demonstrated by bringing USD/CAD from 1.135 to 1.167 in seven days, there is likely to be a retracement in the next few weeks. At the moment the pair is trading in the upper edge of the channel it has been forming since this year's July. Accordingly, we expect there to be a correction to the 1.14 area before the buyers regain control of the market and drive the price beyond 1.167.

The largest part of traders, namely 70% of them, foresee further appreciation of the US Dollar versus its Canadian counterpart. At the same time, the orders are almost equally distributed between the buy (53%) and sell (47%) camps.