USD/CAD locked in a channel

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"It's more generally risk-on. Canada's dollar "may not appreciate too dramatically from here, but we'll probably end up outperforming on the day." 
- Toronto-Dominion Bank (based on Bloomberg)


Pair's Outlook

USD/CAD trades in a very narrow channel last three days, as the price is bounded by the 20-day SMA at 1.0258 and the weekly PP at 1.0285. The loonie experiences a consolidation and as soon as the pair accumulates enough impetus for a movement, it will sharply shoot out of the channel. The closest support will be a 1.0183 level, constructed of the monthly PP, weekly S2 and the lower Bollinger band. The next resistance is the weekly R1 and the upper Bollinger band at 1.0333.

Traders' Sentiment
The buy side expanded by 1% to 57% and the sell side contracted to 43%, indicating that investors still bet on a further appreciation. Placed orders market remains under a strong bullish pressure with 69% of buy orders.
© Dukascopy Bank SA

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