USD/CAD acts predictably

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Our economists continue to expect the first fed funds rate hike in September of this year and see the FOMC dropping the 'patient' reference at the March policy meeting." 
- BNP Paribas (based on CNBC)


Pair's Outlook 
The US Dollar's behaviour was quite predictable, as it performed exactly according to the forecast. USD/CAD grew on Monday, but met resistance as it reached the trendline at 1.2535. Moreover, the the Greenback was unable to breach the line, as supply is bolstered by the monthly PP level. Despite that the technical indicators remain neutral, the pair is still likely to be forced down by the encountered resistances, although the fall will assumingly last until the weekly PP at 1.2518 or the 1.2502, represented by the 20-day SMA. 

Traders' Sentiment 
The distribution between the longs and shorts edged is almost unchanged, as 74% of all traders are bulls. Meanwhile, the share of buy orders dropped 11 percentage points, from 70% to 59%.
© Dukascopy Bank SA

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