USD/CAD testing 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Maybe we're getting a bit of a safe haven bid on the back of weakness in Europe ... and Canada is still seen as a AAA in a relatively safe country. You saw that to some extent in the capital flow numbers this morning."
- BMO Capital (based on Reuters)

Pair's Outlook

After a slow start, pair is picking up the pace and at the moment is testing the strength of 20-day SMA at 1.026. However optimistic  this might look, for the pair it is just a return to the middle point in Bollinger band. We might see a peak to 1.03, but it is very unlikely pair will manage to advance further and, judging from technical indicators and market sentiment, it should remain stable between 1.02 and 1.03 for the time being.

Traders' Sentiment

Situation seems to be rather stable as bulls continue, for quite some time now, account for 57% of market participants. Majority of pending orders (58%) are in their favour as well. This indicates that situation should not change any time soon.

© Dukascopy Bank SA

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