USD/CAD undergoes correction

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Our view is that the Federal Reserve will indeed drop the word 'patient' from the statement but it will be very cautious nonetheless." 
- Societe Generale (based on CNBC)


Pair's Outlook 
USD/CAD dropped after worse-than-expected US data on Monday. The US Dollar tested a group of supports around 1.2730, before settling at 1.2770. Even though the Greenback experienced some downward pressure yesterday, a rebound is likely to erase those losses today. The technical indicators are bolstering a bullish bias, as well as the already released fundamentals. The nearest obstacle is located at 1.2814, represented by the upper Bollinger band. 

Traders' Sentiment 
The bulls are still prevailing over bears among SWFX traders, as 75% of participants remain long the Greenback. At the same time, the percentage of buy commands in the 100-pip range from the spot price increased from 54% to 57%.
© Dukascopy Bank SA

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