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"The Canadian data (has been) uninfluential in pushing USD/CAD away from what we see as the short-term, certainly intraday, range of C$1.0300 to C$1.0350."
- National Bank Financial (based on Reuters)
Pair's Outlook
Apparently, USD/CAD is not in a hurry to start a recovery, it stays dangerously close to the key support at 1.0307/1.0285, undermining its image as an area of strong demand. Nonetheless, the bias is towards a rally, given that the 200-day SMA will also oppose the dip if USD/CAD is to falter and slip beneath the 100-day SMA and at the same time the levels seen in 2009 and 2010.
Traders' Sentiment
A three-percentage-point decline in the share of bullish with respect to USD/CAD traders was reversed over the weekend, being that now 74% of open positions on the currency pair are long. Accordingly, merely 26% of market participants foresee a decrease in the U.S. Dollar's worth relative to the Canadian Dollar.
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