USD/CAD probes monthly pivot

After receiving downward impetus because of a test of the resistance at 1.0527, the pair is slowly but surely approaching the monthly pivot point at 1.0402. In case this support successfully weathers the selling pressure, we would expect a recovery to emerge. However, it is likely to be stopped by the same falling resistance trend-line around 1.0527. In an alternative scenario the dip is expected to extend, but should then be limited by the up-trend support and the 200-day SMA at 1.0330/16.

Judging by the changes in the positioning of the SWFX market participants (longs increased by three percentage points to 74%), it appears that some of the traders have taken advantage of a dip (cheaper U.S. Dollar) that occurred yesterday and placed bullish with respect to USD/CAD bets.