USD/CAD is headed towards 1.0703/1.0693

USD/CAD has successfully confirmed the recently violated rising trend-line and is therefore well-positioned for additional gains. The nearest important resistance is located at 1.0703/1.0693, it is mainly created by the monthly R1 and 2010 highs. In case the currency pair manages to pass through this supply area, it will substantially increase the chance of a rally up to the major up-trend resistance line at 1.0923, which connects the peaks charted since August of 2012.

Since the previous report there has been a noticeable drop in the share of bullish towards the U.S. Dollar traders—from 75% down to 70%. An even greater change has been observed in the distribution between the buy (from 49% to 41%) and sell (from 51% to 59%) orders.