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"We're very mindful the MPR will mostly likely downgrade growth for next year in Canada, which I think is consistent with the modest topside potential and probably a move back towards C$1.05 and perhaps as high as C$1.06 towards the end of the week."
- CIBC World Markets (based on Reuters)
Pair's Outlook
The moment the currency pair hit the resistance at 1.0447/32 the technicals on a daily chart turned neutral, suggesting that the rally may take a while to develop. However, it is well-supported by the monthly PP at 1.0404 and the 55-day SMA at 1.0361/54, meaning that eventually USD/CAD should be able to overcome the 2012 high and surpass the local peak at 1.0608.
Traders' Sentiment
Apparently, a small portion of SWFX market participants were able to profit from the recent leg up, since the share of open longs dropped by two percentage points, down to 71%. Meanwhile, the Canadian Dollar stays the least popular currency—it is acquired in only 30% throughout its crosses.
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