© Dukascopy Bank SA
- TD Securities (based on Bloomberg)
Pair's Outlook
The U.S. Dollar has lost its bullish momentum, which pushed the pair towards the 1.10 level at the beginning of this week. Now it has plummeted below April's low at 1.0859. We think that the pair is oversold at the moment and probably should not fall below the monthly PP at 1.0819. The monthly technicals are still bullish; therefore, that together with the 100-day SMA and weekly S2 at 1.0839/33 could possibly halt the current bearishness.
Traders' Sentiment
An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Loonie. Right now 73% of traders are long the buck, while merely 27% of them believe the currency is going to fall in price even more.
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