© Dukascopy Bank SA
- Prudential Capital Inc. (based on Bloomberg)
Pair's Outlook
The USD/CAD currency pair completely erased Wednesday's gains, without breaking any significant support or resistance levels. Although some of yesterday's weakness was retained, the Buck managed to recover from today low and begin edging higher against the Canadian Dollar. However, the 20-day SMA and the monthly PP form a tough resistance cluster around 1.3130, which is likely to limit the gains, as the Greenback struggled to climb over the monthly PP since the beginning of the month. According to technical indicators, the US currency is to decline against the CAD for the second day in a row, with the nearest support, namely the weekly PP, failing to hold the losses.
Traders' Sentiment
Market sentiment remains bearish, as 54% of traders hold short positions. The share of buy orders, however, increased from 22 to 58%.
© Dukascopy Bank SA