USD/CAD risks closing under 1.33

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The markets are still probably underpricing risks or chances that central banks in these economies cut rates further. Overall, we think increasingly risks are to the downside even versus the U.S. dollar for Aussie and the Canada dollar." 
- BNP Paribas (based on Bloomberg)


Pair's Outlook 
On Thursday, the USD/CAD currency pair went over the 1.33 level, despite a strong supply area bolstering it. Only the second resistance managed to contain the Buck's volatility, while today's technical indicators imply that the bearish trend is to return. Fundamental data, on the other hand, turned in favour of the US currency, suggesting the pair could still recover from its intraday lows and edge closer towards the 1.34 mark. The immediate support, namely the monthly S1 and the 200-day SMA, could contribute to the recovery. A failure to rebound is likely to cause the Greenback to close near the 1.32 level, where the 21-month up-trend coincides with the weekly S1 and the down-trend. 

Traders' Sentiment 
Today 59% of traders are long the US Dollar, compared to 62% on Thursday. The share of sell orders grew larger, namely from 57 to 62%.
© Dukascopy Bank SA

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