USD/CAD drops to the Bollinger band

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"You look at the extent of the move over the last five weeks, it had been a fairly one-way street. The trade was getting a little crowded on the short Canada side versus the U.S., and I'm not overly surprised to see a bit of a correction here." 
- Bank of Montreal (based on Bloomberg)

Pair's Outlook

The loonie continues to depreciate, as the price slipped through the 20-day SMA at 1.0258 yesterday and entered the lower part of the Bollinger bands. Today USD/CAD is traded just below the weekly S1 level at 1.0233, the pair touched the lower Bollinger band at 1.0188 for a moment at the time when macro data were announced. Historically, after a price's reversal and the first touch of an opposite Bollinger line, the spot price re-checks the 20-day SMA and strength of a new trend.

Traders' Sentiment

Distribution of buy and sell positions remains exactly the same as yesterday—bulls have the majority with 57%. Placed orders market is bullish oriented, as 65% are orders waiting to be opened as buy positions.
© Dukascopy Bank SA

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