© Dukascopy Bank SA
- Klarity FX (based on Reuters)
Pair's Outlook
USD/CAD is entering a very narrow range and a break-out is expected soon. To our mind it is more likely that we will see the pair jumping higher; although, a slip towards the weekly S2 at 1.0662 is not excluded. Nonetheless, we see the pair breaching the weekly R1 and 55-day SMA at 1.0787, and possibly the major level at 1.08 later on. The daily and monthly technical studies approve this scenario as they are pointing to the north.
Traders' Sentiment
The majority of the traders consider the dip in USD/CAD to be overstretched. Accordingly, the share of long positions is above 70%. Concerning the orders placed 100 pips from the spot, there are now more commands to buy— 62%.
© Dukascopy Bank SA