USD/CAD plummets from parity condition

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Despite a push back into long U.S. dollar positions last week, on a one-day view the greenback is the weakest performing G-10 currency. Hope that U.S. politicians can avoid the fiscal cliff has been gaining traction over the weekend." 
- Rabobank International  (based on MarketWatch)

Pair's Outlook

Parity condition/200-day SMA introduced more resistance than anticipated and pair plummeted almost 50 pips already. However, current market sentiment and technical indicators allow us to believe that it is just a temporary setback and, if even pair wont rally far above parity condition, it should stay in 1.00-1.004 (Bollinger band) boundaries for some time more. 

Traders' Sentiment
Minor bullish sentiment is holding in the market in the new week as well as 54% of traders hold long positions on the pair. In addition, 60% of all pending orders on the pair are to go long suggesting we should see a persistence in bullish sentiment in the market in the near future as well. 

© Dukascopy Bank SA

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