© Dukascopy Bank SA
- Bank of Nova Scotia (based on Bloomberg)
Pair's Outlook
The currency couple's surge from 1.0095 turned out to be fragile and broke up at 1.0178/68, at a resistance area consisting of the weekly R1 and 55-day SMA. Accordingly, a chance of a rally up to 1.30 has fallen, but as long as 1.0145/38 is intact, bullishness in the medium term is more likely scenario than a dip, even though in the longer term the outlook is deemed to be negative.
Traders' Sentiment
The Canadian Dollar, along with the New Zealand Dollar, is one of the least attractive for traders currency. This negative attitude towards the loonie is especially visible in the ratio of long to short positions on USD/CAD, 73% to 27%. Similarly, a majority (65%) of orders are to buy the U.S. Dollar.
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