"A drop in oil prices and reports that Canadian officials will try to tame the housing market sent USD/CAD close to 1.35 on Wednesday."
— Ashraf Laidi, Intermarket Strategy Ltd. (based on investing.com)
Pair's Outlook
During the first half of Friday's trading session the Greenback retreated against the Loonie. However, at 12:30 GMT the lower than expected Canadian CPI data forced the rate higher. During the move the currency exchange rate returned to fluctuate back above the resistance of the long term trend line and the monthly R1. Both of the mentioned resistance levels are located at the 1.3481 level. Market participants should look out for signs of the future direction of the pair, as it can either bounce to the weekly R2 at 1.3529 or retreat to the weekly R1, which is located at 1.3429.
Traders' Sentiment
SWFX traders remain bearish on the pair, as 64% of open positions are short. Meanwhile, 68% of trader set up orders are to sell the Buck.
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