USD/CAD puts 1.33 to the test

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Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Yield differentials are always a huge driver of FX. U.S. real yields are elevated and likely to continue rising -- this will continue to underpin dollar strength and is worth keeping an eye on."  
– Jefferies Group LLC (based on Bloomberg) 


Pair's Outlook 
Same as the Aussie, the Canadian Dollar also benefited from risk-appetite today, gaining more value against the Greenback after another day of relatively flat trade. A strong demand area around 1.3375, formed by the weekly S1, the monthly PP, the 20 and the 55-day SMA, is struggling to limit the losses, as currently the intraday low reached the second target, namely the support cluster around the 1.33 mark. The overall bottom floor is likely to be the 1.3256 level, where the 100-day SMA lies, but technical studies keep implying the pair could recover and end the day trading in the green zone. 

Traders' Sentiment 
Bulls keep growing stronger, as now 70% of all open positions are long (previously 68%). At the same time, the number of orders to purchase the US Dollar increased from 41 to 56%.
© Dukascopy Bank SA

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