© Dukascopy Bank SA
- TD Securities (based on Reuters)
Pair's Outlook
Yesterday USD/CAD managed to climb above the 1.10 level; however, today the pair dropped below this level again. Currently, the pair is hovering between the weekly S1 and monthly R1 at 1.0950/80, respectively. It seems that the pair might be well-supported around the weekly S1, as there to help are 20 and 200-day SMAs at 1.0948/39. We expect the pair to reverse its recent losses and to appreciate above the 1.1000 mark.
Traders' Sentiment
An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Loonie. Right now 70% of traders are long the buck, while merely 30% of them believe the currency is going to decline in price even more.
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