USD/CAD in limbo ahead of FOMC meeting

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The market is currently over positioned for a dovish monetary policy decision and statement. Fed Funds are pricing in a soft 20% probability for a June rate hike. The USD oversold position has unwound marginally but IMM indicates that speculative USD long remains historically low, while the US yields curve front-end has steepened, rates remains pointedly low. A less dovish Fed will have a rapid market impact."
- Swissquote Bank (based on WBP Online) 

Pair's Outlook 
After the sixth attempt the US Dollar breached the psychological 1.2650 support level, stabilising right on top of the 1.26 mark. The American Dollar remains muted ahead of the Federal Funds Rate decision, but according to the preserved bearish trend the USD/CAD is expected to sustain another loss. The nearest support to limit the dips rests around 1.2475, represented by the weekly S1, the Bollinger band and the monthly S2. Technical studies now shifted from bearish to mixed, implying that a recovery today is not out of the question; if this scenario prevails, the monthly S1 and the weekly PP circa 1.2736 are the levels to attempt to contain the gains. 

Traders' Sentiment 
There are 64% of traders holding long positions (previously 62%). Meanwhile, the share of buy orders increased from 53 to 72%.
© Dukascopy Bank SA
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Actual Topics

Wed, 27 Apr 2016 14:55:05 GMT

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