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"We continue to like the Canadian dollar on a relative value basis."
- CIBC World Markets (based on Bloomberg)
Pair's Outlook
Although USD/CAD is trading near a psychological parity level (1.00, the pair managed to continue bouncing from this line and for now 1.0085 might serve as an initial resistance level, confirmed by a 200-day simple moving average. A breach of this line might expose further resistance lines at 1.0157 (100-day SMA) and 1.0257 (PP Monthly), accordingly.
Traders' Sentiment
71% of investors are long on USD/CAD, anticipating the US dollar to appreciate against the Canadian dollar, while 29% of currency traders are favoring an alternative scenario. The allocation of positions point at a bullish sentiment on USD/CAD as 53% of investors keep long positions.
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