USD/CAD resumes the fall after moderate rebound

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The recent improvement in US economic data is not yet strong enough and has not been sustained for long enough to provide more material support for the US dollar." 
- BTMU (based on FXStreet) 


Pair's Outlook 
The Greenback mostly behaved in accordance with the forecast, as it advanced against its Canadian counterpart at the end of last week. The 1.23 psychological level, however, stopped the pair from advancing further, limiting the gains at 1.2267. Furthermore, the US Dollar is likely to suffer losses today, despite good fundamental data expectations. The nearest support is the weekly PP, but the 55-day SMA provides more foundation. Nevertheless, we might even see the US currency reach the 1.22 major level if the data disappoints, as technical indicators retain bearish signs. 

Traders' Sentiment 
Today 52% of all positions are long, compared to 51% last Friday. The share of purchase orders also improved, from 33 to 49%.
© Dukascopy Bank SA

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