USD/CAD takes a breath around the monthly R2

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The Canadian economy, based on the data we've seen, is in a vulnerable spot. If we see this string of downbeat data continues out of Canada, we may hear eventual talk about a rate cut from the Bank of Canada." 
- Western Union Business Solutions (based on Reuters) 


Pair's Outlook 
USD/CAD pair reached the monthly R2 level at 1.0246 yesterday and even slightly exceeded it.  However, today the price exhibits bearish sentiments and USD/CAD is slightly lower, around 1.0250 level. If the pair maintains bullish  sentiments further, the next resistance level is only at 1.0384, where a long term down-sloping resistance is located. 

Traders' Sentiment 
Traders' sentiment has deteriorated towards the Canadian Dollar, as there are now 39% of long positions and 61% of short. Placed orders market indicates different sentiments than the spot, since 62% of orders are set for a long position and 38% for a short.
© Dukascopy Bank SA

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