USD/CAD closes in on 1.0999

The currency pair continues with its precipitous increase—at the moment USD/CAD is testing the monthly R3 level and seems to be able to close above this resistance today. The next goal for the U.S. Dollar may be 1.0999, a point where the long-term up-trend resistance line merges with the 2009 September high, making it a potential ceiling for the rate in the medium term.

The short positions are being dislodged by the long ones, as the portion of the latter advanced from 56% up to 62%, meaning the traders are expecting the rally to develop even further. However, USD/CAD is entering the area where the number of sell orders (69%) greatly exceeds the number of buy ones (31%).