© Dukascopy Bank SA
By crossing the monthly pivot point and 100-period SMA, the USD/CAD currency pair is putting itself at risk of a sell-off in the nearest future. The nearest support to meet is placed around 80 pips below the spot at 1.30 (weekly S1). However, even more important demand is located at 1.2831 (monthly S1), and a breach of this mark will expose the pattern's lower trend-line at 1.27. On the other hand, a decline can be delayed for some time, as suggested by bullish daily technical indicators. Meanwhile, market participants of the SWFX market are largely undecided on the perspectives of the US currency vs the Canadian Dollar. At the moment 51% of all open positions are bearish, while bulls take up a share of 49%.
© Dukascopy Bank SA