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- Cambridge Global Payments (based on Reuters)
Pair's Outlook
As noted previously, USD/CAD is well-positioned for a rally towards 1.3350/00, but there its bullish ambitions are likely to come to an end. This resistance is created by a combination of the 38.2% Fibonacci retracement of the Jan 19-May 1 sell-off with the 100 and 200-day SMAs, and it also includes the weekly R1 and monthly R2 levels. All of this suggests a very low probability of the exchange rate exceeding 1.3350 any time in the nearest future.
Traders' Sentiment
Sentiment among the SWFX traders towards USD/CAD is no longer bullish. While yesterday 56% of open positions were long and 59% of pending orders were buy, today the percentages are 53 and 48%, respectively.
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