USD/CAD to test resistance trend-line

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Volatility is going to be pretty high as liquidity is going to be stretched as we head into the end of the week."
- Cambridge Global Payments (based on Reuters)


Pair's Outlook 
The USD/CAD surprised with its performance yesterday, as the pair gained over 60 pips. The immediate resistance was breaching, allowing the Buck to climb above 1.24. The Greenback is now located close to the trend-line, which should cause the currency to bounce back in the near future. Nevertheless, the nearest resistance is represented by the Bollinger band and the trend-line, which are likely to limit an gains. We should not rule out the possibility of the USD/CAD falling back down if the US fundamentals disappoint. Meanwhile, technical studies retain their mixed signals.  

Traders' Sentiment 
Only 51% of traders have a positive outlook towards the Buck, while the portion of orders to buy the US Dollar edged up from 53 to 63%.
© Dukascopy Bank SA

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