USD/CAD returns to 1.0219/02

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"It's slightly improved risk-sentiment. It follows almost three or four days or very negative sentiment."
- Nomura Securities (based on Reuters)

Pair's Outlook

After yesterday's rally USD/CAD is again taking a step backwards, though the dip should be limited by a confluence of supports at 1.0219/02. On the other hand, growth of U.S. Dollar's value will be hindered by the falling resistance line that is forming a formidable zone at 1.0308/1.0278, which will be even harder to overcome than 1.0219/02, implying initiation of a downward wave.

Traders' Sentiment
The portion of bulls in the market has grown fractionally since the last report, by 1% up to 75%, while bears stay in a distinct minority (25%). The ratio between the buy and sell orders is unchanged as well, 67% of them are to acquire the U.S. Dollar and 33% are to acquire its Canadian counterpart.
© Dukascopy Bank SA

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