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"We hit our target on Friday with the payrolls number. With this pullback, we actually see this as a buying opportunity for USD/CAD."
- Haitong International Research (based on Reuters)
Pair's Outlook
Such an extensive move USD/CAD staged yesterday requires a consolidation, which we are currently observing on the daily chart. The nearest resistance and support levels are respectively at 1.0415/04 and 1.0365/38, but we cannot expect them to hold for long. The technical indicators are still in favour of a rally, but we require a close above 1.0447 in order to reinstate the bullish outlook.
Traders' Sentiment
The current distribution between the long and short on USD/CAD positions is 71% to 29% respectively, which is a small shift to a less bullish aggregate stance of SWFX marketplace participants. Looking at the intentions of traders in the future, 56% of them are planning to buy the U.S. Dollar and 44% intend to sell it against the loonie.
© Dukascopy Bank SA