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"I was never an advocate for a lower dollar...the dollar is delivered to us from markets. It's not something we get to choose."
- Stephen Poloz, Bank of Canada Governor (based on Reuters)
Pair's Outlook
While the support at 1.0404, represented by the monthly PP level, proved to have low reliability, the 55-day SMA, currently at 1.0363, has successfully reversed the course of USD/CAD and pushed it towards 1.0447/32 that for now remains impenetrable. Nevertheless, despite the bearishness in the short run, later in the future the pair should be higher that it is now.
Traders' Sentiment
The amount those traders who consider the Canadian Dollar to be a bullish currency is in a distinct minority—only 29%. The loonie is even less preferred in its pair with the U.S. Dollar, where 73% are long and 27% are short, the latter part being in favour of the stronger CAD.
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