USD/CAD fails to rebound

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Overall, it's just positive risk sentiment that's driven the Canadian dollar higher, supported by the fact that we had some positive housing starts numbers that came out this morning."
- KnightsbridgeFX.com (based on Reuters)


Pair's Outlook
The U.S. Dollar tested the weekly PP at 1.0954 today, after yesterday the pair slid below this level. We expect the pair to pick up and to breach the weekly PP in the short run; however, in longer period the major level at 1.10 should be broken. The technical studies are also bearish and to our mind there are no major obstacles for the pair to surpass the 1.10 mark. Nonetheless, it is possible that the pair will struggle to breach the weekly and monthly R1 at 1.1005/18.

Traders' Sentiment
The sentiment towards USD/CAD is becoming more neutral, at the moment 51% of the traders are bearish it is slightly less compared to yesterday's 53%. In the meantime, the share of orders to enter the market with a sell trade edged up to 60%.
© Dukascopy Bank SA

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