USD/CAD negates Thursday rally

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Our technical analyst highlights a series of bearish weekly key reversals for USD against EUR, GBP and CAD, suggesting USD will start this week on the back foot." 
- RBC Capital Markets (based on Reuters)


Pair's Outlook 
USD/CAD fell deeper than on Wednesday. Nevertheless, the monthly PP remained a strong support level. By the end of the trading session the pair settled at 1.2549. The US Dollar is expected to regain the bullish momentum today, as the technical indicators are mostly giving 'buy' signals. The closest resistance level rests at the 20-day SMA. A stronger demand area lies at 1.2610, represented by the weekly PP. 

Traders' Sentiment 
SWFX sentiment keeps deteriorating: the portion of longs is at 71% (72% on Friday). The share of buy commands 100 pips from the spot price plunged, as 38% of all orders are set to buy the Buck (57% on Mar 20).
© Dukascopy Bank SA

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