USD/CAD faces risks of edging down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We had a pretty big move up in the dollar, so its natural that there is a pause especially with the U.S. calendar a bit empty and little in store to push Treasury yields higher today." 
- Nordea (based on Reuters) 

Pair's Outlook 
The American Dollar barely managed to advance versus the Loonie yesterday. The weekly R1, along with the 100-day SMA, not only limited the gains, but also pushed the USD/CAD back to 1.2323. The lack of growth indicates that the US Dollar has a solid chance of bouncing back and resume sliding down. Nonetheless, there is still room for the given pair to appreciate at least to 1.2420, where the resistance trend-line rests. The weekly PP should limit the losses today, assuming the pair will reach that low, while the cluster around 1.2380 keeps providing substantial resistance. 

Traders' Sentiment 
Traders bullish sentiment remains unchanged at 51%. The number of orders to acquire the US Dollar now takes up 60% of the market.
© Dukascopy Bank SA

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