© Dukascopy Bank SA
"The dollar's latest rally was started by nothing other than Bernanke's comments last month (that the Fed could reduce stimulus.) Few people would have thought he would suddenly turn dovish."
- a trader at a Japanese bank (based on Reuters)
Pair's Outlook
USD/CAD took a massive hit yesterday, plummeting under the level we considered to be more or less safe. The decline extended through 1.0415/04 as well, finding stable ground only at 1.0359/33. Since then the price has recovered back above the monthly pivot point, but, given that 1.0447 is violated, the currency pair is still capable of moving lower, down to the falling support line at 1.0261/53.
Traders' Sentiment
The fact that USD/CAD went sharply down on Wednesday not only failed to reduce the portion of those believing the U.S. Dollar is going to appreciate, but instead increased currency's attractiveness. At the moment of writing 73% of positions are long and 27% are short.
© Dukascopy Bank SA