© Dukascopy Bank SA
- TD Securities (based on Reuters)
Pair's Outlook
Since the USD/CAD cross touched the major level at 1.11 it has disappointed the bullish traders as the pair has dropped below the 1.10 mark. Although, the technical indictors are still bullish, with the weekly and monthly ones pointing to the north. We do not think that the U.S. Dollar will fall below the cluster of supports (weekly S1; 20 and 200-day SMAs) around the 1.0950 level. A rebound from current trading levels towards the 1.1000 seems more likely scenario, since we believe that the pair has not lost its bullishness.
Traders' Sentiment
The recent decline has convinced the traders to buy the pair, as 70% of the SWFX market participants think that the pair is undervalued. In the meantime, the share of buy orders slid from 66% to 59%.
© Dukascopy Bank SA