© Dukascopy Bank SA
- Royal Bank of Canada (based on Reuters)
Pair's Outlook
After a very strong performance of the US Dollar on Friday, the USD/CAD has traded very tranquil. Moreover, the pair reached new this year's high at 1.1477 on Friday completely due to the USD strength. Most likely, the pair will continue to hover around the 1.15 level and period of consolidation is possible. Although, we expect the pair to target the 1.16 level towards the end of this year, if the support by the monthly PP and weekly S1 will hold.
Traders' Sentiment
An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Canadian Dollar. Right now 71% of traders are long the buck, while merely 29% of them believe the currency is going to decline.
© Dukascopy Bank SA