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- RBC Capital Markets (based on Reuters)
Pair's Outlook
USD/CAD largely ignores the nearby support levels and thus remains on the decline. The 55 and 100-day SMAs, including the rising support line, are already behind, and now it is a turn of the weekly and monthly S1 levels to be breached. Nonetheless, the downside is likely to be limited by the area at 1.0285/63, as it is composed of the 200-day SMA and a major bullish trend-line.
Traders' Sentiment
Cheaper price made the U.S. Dollar even more attractive with respect to the loonie than it was before. Right now 72% of all the positions in USD/CAD are long. This figure might get even bigger if the pair descends lower, although the forecasts do not suggest such a scenario, they point at 1.04 as the fourth quarter's starting price.
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