USD/CAD consolidates above 1.24

USD/CAD appears to be consolidating in a triangle pattern after finding solid support at 1.24, where the monthly PP merges with the 20-day SMA. The buying pressure here should be enough to send the exchange rate back to the January high at 1.28. Additional demand is supposed to be at 1.23, the current location of the 23.6% Fibonacci retracement from the rally started last year in July. Failure here may well lead to a dip down to 1.1950.

An overwhelming majority of the market participants trading USD/CAD is long the US Dollar. Right now 73% of them expect the currency to appreciate. Moreover, the portion of commands to purchase the Buck surged from 42 to 60%.