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- Rabobank (based on Bloomberg)
Pair's Outlook
The USD/CAD currency pair underwent the expected decline, amid the BoC leaving its key overnight rate unchanged at 0.50%. The Greenback was also unable to fall beyond the 1.30 psychological level, as was anticipated. Although the monthly R1 at 1.3016 managed to limit the losses yesterday, it is unlikely to succeed in doing so again today. The closest support afterwards is located around 1.2930, represented by the weekly S1, the 20 and the 55-day SMAs, where demand should be sufficient in order to prevent the Buck from edging lower. Technical indicators, on the other hand, retain their bullish signals in the daily timeframe.
Traders' Sentiment
Today 54% of traders hold long positions, compared to 50% on Wednesday. The share of purchase orders surged from 42 to 81%.
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