"A drop in oil prices and reports that Canadian officials will try to tame the housing market sent USD/CAD close to 1.35 on Wednesday."
— Ashraf Laidi, Intermarket Strategy Ltd. (based on investing.com)
Pair's Outlook
By the middle of Thursday's trading session the US Dollar remained almost unchanged against the Canadian Dollar. The currency exchange rate was fluctuating just above the combined support level of the monthly R1 at 1.3481, upper Bollinger band at 1.3486 and the upper trend line of the long term descending channel pattern at 1.3482. It is highly possible that because this level has been broken the rate will surge up to the weekly R2, which is located at the 1.3529 level. However, for that to occur Loonie weakness has to persist.
Traders' Sentiment
SWFX traders remain bearish, as 61% of open positions are short. Meanwhile, 66% of set up orders are to sell the Buck.
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