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- Sumitomo Mitsui Trust Bank (based on Business Recorder)
Pair's Outlook
The US currency edged lower on Monday, closing trade under the 1.33 major level. In the upcoming days the USD/CAD is expected to fall as low as 1.32 and, perhaps, even below the 55-day SMA (currently art 1.3175). In case of the breach, the second strong support to focus on is the 100-day SMA, which might climb a few pips higher and form an even stronger support with the help of the monthly PP and 20-day SMA. Meanwhile, the monthly R1 remains a resistance to be considered in case bulls take over.
Traders' Sentiment
Bulls and bears broke out of the equilibrium, as 51% of all positions are now short and the remaining 49% are long. At the same time, the number of purchase orders decreased from 71 to 69%.
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