© Dukascopy Bank SA
- Bank of Tokyo-Mitsubishi (based on WBP Online)
Pair's Outlook
The Loonie weakened against the American Dollar after the BoC's statement on Wednesday. As a result, USD/CAD pierced the two immediate resistances and closed trade only at 1.3138. From below the Greenback is now supported by the 20-day SMA, while the 55-day one and the weekly R2 are forming a resistance cluster around 1.3175. Nevertheless, the pair is still expected to decline towards the 1.31 major level, now bolstered by the 20-day SMA as well. A deeper fall towards 1.3050 is also possible if the US fundamentals disappoint too much.
Traders' Sentiment
Bulls eventually retreated, as the bears now take up the majority (51%) of the market, whereas 53% of all orders are to buy the USD.
© Dukascopy Bank SA