USD/CAD risks slumping under 1.31

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Short-term trend momentum signals are aligned bearishly for the USD, suggesting the USD may struggle to improve significantly at the moment.  We think the USD needs to get back above 1.3240/50 in order to stabilize or improve from here." 
- Scotiabank (based on FXStreet) 


Pair's Outlook 
The USD/CAD currency pair ended the previous week with a small decline, remaining below the 1.32 level. Moreover, the pair opened with a relatively strong bearish gap today, but further bearish development seems doubtful, as a strong demand area is located just below today's opening price. This support cluster is represented not only by the Bollinger band, the monthly S2, the weekly S1 and the 200-day SMA, but also by the nine-month up-trend. Nevertheless, technical indicators still insist the Greenback is to allow the Loonie to take the upper hand, as they keep giving bearish signals. 

Traders' Sentiment 
There are now 63% of traders with a positive outlook towards the US Dollar today, compared to 51% on Friday. Meanwhile, 62% of all pending orders are to acquire the American Dollar.
© Dukascopy Bank SA

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