© Dukascopy Bank SA
- TD Securities (based on Reuters)
Pair's Outlook
It seems that the US Dollar is likely to prolong its yesterday's decline, as it has touched the 20-day SMA at 1.1291 today. We see this retreat as a correction and that USD/CAD is likely to regain its bullishness. Moreover, the weekly and monthly technical studies remain to the upside. Most likely, the lowest level till which the pair might slide for now is the monthly PP and weekly S1 that are located at 1.1242/41.
Traders' Sentiment
An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Canadian peer. Right now 71% of traders are long the buck, while merely 29% of them believe the currency is going to fall in price even more.
© Dukascopy Bank SA