© Dukascopy Bank SA
"Overall, the Canadian dollar still stands to benefit from its proximity to the U.S., (but) it's a low-beta currency in good times and bad times."
- CIBC World Markets (based on Reuters)
Pair's Outlook
The support at 1.0325 could potentially provide a relief, but we expect it to be brief and insubstantial, considering that the near-term outlook remains bearish. A test of either 1.0276 or 1.0253/37, on the other hand, should lead to a more robust recovery, which will be able to persist until the high of 2012 at 1.0447, even though USD/CAD will have to overcome the 55-day SMA and monthly PP.
Traders' Sentiment
If we were to take all the positions in the loonie crosses and distribute them among the long and short ones, the former would constitute only 27%, while the latter—73%. Bearishness of the Canadian Dollar is marginally less impressive in USD/CAD, where 70% of traders are against and 30% are for its appreciation.
© Dukascopy Bank SA