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– Greg Anderson, Bank of Montreal (based on Bloomberg)
Pair's Outlook
As the Canadian Dollar lost value against the US Dollar, the USD/CAD currency exchange rate surged above the large scale rising channel pattern's upper trend line on Friday. In the first half of Monday's trading session the currency pair remained above the trend line, as it opened the day's trading session lower than the previous close, but still 15 pip above the trend line. Moreover, by mid-Monday the currency rate broke the resistance put up by the monthly R1 at 1.33, which began to provide support afterwards. Due to these facts, the pair is set to continue the surge.
Traders' Sentiment
Traders have increased their bearish sentiment, as 74% of open positions are short. In the meantime, set up orders have not changed, as 56% of them are set up to buy.
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