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"The weak CPI is reducing any expectation the Bank of Canada will be hiking (rates) any time soon - not that there was any - but it signals the Bank of Canada will be on hold for a very long time."
- Nomura Securities (based on Reuters)
Pair's Outlook
As suggested by three daily technical indicators, the currency pair displayed a bit of weakness last week and may descent even lower. The first level to support the price will be in this case the weekly S1 at 1.0325, although we would look at 1.0295/91 (weekly S2 and Bollinger band) and 1.0275/65 (100-day SMA and down-trend support) as more probable reversal points.
Traders' Sentiment
The gap between the amount of long and short positions has slightly widened since Friday, since the percentage of bulls has risen up to 72%, while the percentage of bears has decreased to 28%. As for the orders placed on USD/CAD, 53% are to buy the U.S. Dollar and 47% are to buy the Canadian Dollar.
© Dukascopy Bank SA