"The overbought reading on the daily Stochastic indicator increase the probability USD/CAD will continue to fall toward the forecast price 1.3490."
— AutoChartist (based on investing.com)
Pair's Outlook
The Greenback managed simultaneously to reach new heights and retreat against the Canadian Dollar during the first half of Thursday's trading session. The currency exchange rate reached and bounced off from the monthly R2 at 1.3643, as it was forecasted before. However, the pair did not follow through and move higher. It had retreated to the 50.00% Fibonacci retracement level by the middle of the day and had touched much lower levels. Due to that it is quite possible that a reversal of the US Dollars surge against the Loonie is about to occur.
Traders' Sentiment
SWFX traders are no longer increasing their bearish sentiment, as 69% of open positions are short, compared to 71% previously. Moreover, 62% of set up orders are to sell, compared to 71% previously.
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