USD/CAD tumbles at the beginning of the new month

The USD/CAD pair failed to continue the consecutive half- year appreciation and the month of February started with a noticeable slump. The weekly chart shows a strong resistance level at 1.273, which is the 2005 May high. A dive lower will be supported by April 2009 high at 1.246 level. As a matter of fact, the current slight correction seems to be reasonable as the pair is highly overbought since December 2014.

The USD/CAD pair lost some of its bullish traders since only 35% of all are holding long positions. The pair will be likely sold once it moves 50– pips, 73% of market participants placed the order on a short side.