"It's safe to say that 1.3200 is important in USDCAD and a break below would be an early sign that this horrendous range (from May 2016) is nearing completion."
— Jamie Saettele, Daily FX
Pair's Outlook
During the first half of Friday's trading session the US Dollar traded against the Canadian Dollar above a previously described and significant cluster of levels of significance. The pair was located above the combined support of the weekly S1 at 1.3321 and the 38.20% Fibonacci retracement level at 1.3313. The rate reached that level after a sudden rebound on Thursday, which occurred, as the Buck encountered the 200-day SMA near the 1.3325 level against the Loonie. In general, a continuation of the surge up to the 1.3356 level, where the 20-day SMA is located at, is possible by the end of the day.
Traders' Sentiment
Traders are slightly bearish, as 53% of open positons are short. Moreover, 66% of set up orders are to sell.
© Dukascopy Bank SA