© Dukascopy Bank SA
"Investors are paying more attention to the U.S. economic data than the Fed's words. Because the data has been better than expected, the tapering concerns are back."
- Samsung Futures Inc. (based on Bloomberg)
Pair's Outlook
Using a bearish trend-line at 1.0260 as a springboard, the currency pair managed to balloon up to the monthly pivot point level at 1.0379, where the 55-day SMA resides as well. Once this area is overcome, USD/CAD should set its course towards the 2012 high at 1.0447. Previously the rally beyond this resistance proved to be unsustainable, but the U.S. Dollar is anticipated to appreciate in the long term.
Traders' Sentiment
The gap between the bulls and bears managed to narrow overnight, but insubstantially, since most (71%) of positions are still long and only 29% are in favour of a weaker U.S. Dollar. The gap between the buy (60%) and sell (57%) orders placed on USD/CAD, conversely, widened.
© Dukascopy Bank SA