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"A strongly dovish message countering that status quo is likely to establish support for stimulus-dependent assets and broadly weigh on the U.S. dollar. Alternatively, rhetoric on the hawkish side of the spectrum will probably produce the opposite effect."
- DailyFX (based on MarketWatch)
Pair's Outlook
For the time being this week appears to be prominently bullish for USD/CAD, as the currency pair is currently 100 pips above this week's open price. Right now the resistance at 1.0416 is being eroded, but neither this level nor a subsequent one at 1.0463 are expected to contain the surge for long. The monthly R1 at 1.0512, on the other hand, poses a real threat to the upward momentum.
Traders' Sentiment
There has been another contraction in the amount of traders believing the U.S. Dollar is going to appreciate, but the change was too small to have a real impact on the sentiment. The long positions on USD/CAD remain the most popular, they are held by 70% of the SWFX market participants.
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