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"I don't expect the Canadian dollar to strengthen against the U.S. dollar, but to stay relatively firm against everybody else, simply because the dollar is naturally going to get flight-tosafety flows as the crisis deepens"
- Boris Schlossberg, research director at GFT Forex (based on CNBC)
Pair's Outlook
The pair managed to hold near this year high (1.0200), though to continue bullish movement, the pair has to breach the 1.0252 level—January 16 High. In case of a breakthrough here, it would expose levels at 1.0316 (upper resistance line) and 1.0383 (R2 weekly).
Traders' Sentiment
The share of short positions on USD/CAD is gradually expanding and has already reached 58% of the market (42% of long positions) as investors expect the pair to lose impetus over the short term. Within 100 pips from the present market price, investors are more bullish on the pair as they expect USD/CAD to continue a rally after the correction.
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