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- Nomura (based on Reuters)
Pair's Outlook
As was expected, the 55-day SMA managed to prevent the USD/CAD currency pair from edging lower yesterday, which resulted in the Buck closing only with a 44-pip loss. Consequently, the Greenback should now undergo a correction and climb back over the 1.30 major level, with the monthly R1 and the weekly PP forming a strong resistance cluster circa 1.3025. This cluster is the last obstacle on the US Dollar's path towards retaking the 1.31 psychological level. Even though technical indicators are bolstering the possibility of the positive outcome, there are risks of a decline present, as the pair appears to have reversed its previous short-term bullish trend on Tuesday.
Traders' Sentiment
Traders' sentiment remains bullish at 54% for the second day in a row, whereas the share of buy orders dropped from 81 to 41%.
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