© Dukascopy Bank SA
The bullish correction, which occurred yesterday, did not manage to last long, as today EUR/CAD experienced a significant bearish reaction, which has already crossed the monthly R2 at 1.2711, and at the particular moment the currency pair is about to test the weekly PP at 1.2641, which is likely to slow down the downtrend. If it fails to stop the movement downwards, then next support at 1.2545 (20-day SMA) will probably bring some bullish impetus. Nevertheless, RSI indicator shows a neutral signal, although the overall indicator outlook is positive.
Traders' sentiment
SWFX market participants are almost neutral regarding the potential strength of the single European currency, since 46% of traders hold long positions and 54% of traders hold short positions. In contrast, the distribution of orders shows slight uptrend expectations, as 71% of traders ordered to buy and only 29% ordered to sell the Euro.
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