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"The Canadian economy had a bit more energy than expected at the start of the year, managing to rebound nicely from the December ice storm as well as braving the unusual cold in January."
- Bank of Montreal (based on Reuters)
Pair's outlook
USD/CAD has started this week with a retreat, prolonging last week's decline. The pair is trading just above longer term uptrend's support level at around 1.1014. This trend line has not been broken since it formed on October, therefore, we expect the pair to advance towards 55-day SMA at 1.1087. Majority of weekly and monthly technical indicators are suggesting that the greenback will appreciate against the loonie.
Trader's sentiment
The sentiment among the SWFX traders' has not changed, 74% of them are bullish on this currency pair. In the meantime, the share of orders to enter the market with a sell trade edged up and reached 46%.
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