USD/CAD to edge lower for the fourth day

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"I want to buy break-even inflation in the U.S. because the Fed wants that higher and that's what undermines the dollar." 
- Societe Generale SA (based on Bloomberg) 


Pair's Outlook 
The US Dollar continued to decline against its Canadian counterpart, as the US GDP data disappointed yesterday. However, the immediate support, represented by the weekly S1, succeeded in keeping the pair elevated over the 1.25 major level. In case this level gets breached today, then the monthly S2 and the Bollinger band circa 1.2425 are to limit larger dips. Even though daily technicals are mixed, the weekly ones retain their bearish signals, indicating that the bearish trend remains intact. In order to reverse the bearish trend, the Greenback is required to pierce the immediate resistance, where the descending channel's upper border Is located.

Traders' Sentiment 
Today 69% of traders are long the Buck, whereas the share of purchase orders lost 10% points, having fallen down to a total of 43%.
© Dukascopy Bank SA

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