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"The positive news out of Europe caused a bit of demand for the Canadian dollar and other risk-based assets."
- BMO Capital Markets (based on Reuters)
Pair's Outlook
USD/CAD remained throughout the day as uncertainty over Spain still persists. Thus, a risk of the downside movement persists, therefore if the bearish correction deepens, AUD/USD could retrace to 1.0200 (initial support line) and it could down to the weekly support line at 1.0170 As the pair is trading above 200-da ma, the bullish trend to stay strong over the short term.
Traders' Sentiment
Bullish traders strengthened their positions this time as currently 55% of the overall number of market participants stay long on USD/CAD, whereas 45% expect the Canadian Dollar to appreciate relative to the American Dollar. Within 100 pips from the present market price, 58% of investors expect the pair to go downwards.
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