USD/CAD decelerates ahead of 1.0108/1.0099

For now USD/CAD is static, but is considered to preserve some part of the bullish impetus seen last Friday that should be demonstrated later on, driving the price up to the rising resistance line, namely to 1.0159/40. Still, prior to that we have to get rid of the supply area at 1.0108/1.0099, which proved to be stronger than previously estimated and thus poses a substantial risk to the rally.

USD/CAD is now significantly less overbought than last Friday, since the portion of bulls in the market has dropped down to 60%, while bears (40%) are regaining lost positions. In the meantime, the dominance of buy orders is becoming more explicit, as 79% of traders intend to acquire the buck against the loonie.