USD/CAD recovers from weekly PP

Slowly but steadily USD/CAD is making progress towards a major resistance area at 1.3370/10, where the 100 and 200-day SMAs are joined by the weekly R2 and monthly R1. This supply zone is further reinforced by the 38.2% Fibonacci retracement of this year's down-move from 1.46 to 1.25. We are therefore currently bullish on the pair, but only for the next few weeks. Once the price touches upon the 1.3370/10, the short-term bias will be changed to a strongly bearish outlook.

In the meantime, positioning in the SWFX market shows indecision among the traders—49% of them are bulls and 51% are bears. Similarly, the difference between the numbers of buy and sell orders is also insignificant, only eight percentage points.