USD/CAD attempts to erase Monday's losses

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Technical factors warn of the risk of additional near-term US dollar losses, though it closed near its lower Bollinger Band (~CAD1.3290). A break of CAD1.3200-CAD1.3230 could spur a move toward CAD1.30."
- BBH (based on FXStreet)


Pair's Outlook 
After having experienced relatively strong volatility on Monday, the USD/CAD is now expected to take a breather. Commodity currencies appear to be on the back foot today, allowing the US Dollar to take the upper hand. Even though technical studies are unable to confirm the possibility of the positive outcome, the monthly S1 and the Bollinger band form a relatively strong demand area just below today's opening price, which seems to be preventing the pair from edging lower. As a result, focus shifts to the nearest resistance, namely the 38.20% Fibo and the 55-day SMA circa 1.3313. 

Traders' Sentiment 
Today 62% of traders are long the Buck, compared to 60% on Monday. In the meantime, the majority of all pending orders are to sell the American Dollar, namely 52%.
© Dukascopy Bank SA

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