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"All in all, we just really seem to be in a period of rest here where the market's digesting the combination of Governor Poloz's tone, as well as the FOMC meeting last week."
- Scotiabank (based on Reuters)
Pair's Outlook
USD/CAD has declined slightly and has breached monthly R1 at 1.1197 and at the moment it is supported by weekly PP at 1.1176. Even though, the pair is trading around the highest level in four years we do not think that it has lost all of its bullish potential. If it fails to break weekly PP we see it trading higher and it could approach Bollinger Band at 1.1263. However, if the weekly PP is broken than the pair might fall towards 20-day SMA.
Traders' Sentiment
The SWFX market participants' sentiment towards USD/CAD has become more bullish as it has reached 68%. In the meantime, the share of orders to enter the market with a buy trade remained more or less at the same level as yesterday – 56%.
© Dukascopy Bank SA