© Dukascopy Bank SA
"In the next few weeks, through tame summer trading, we could see more of a grind higher for the Canadian dollar on some of these positive Canadian data trends."
- Toronto-Dominion Bank (based on Bloomberg)
Pair's Outlook
In the end USD/CAD has effortlessly pierced through some of the nearest supports, violation of which exposed 1.0277—a combination of the 100-day SMA and the down-trend support line. We see this zone as a floor for the trading in the short run, but we should not rule out a possibility of a deeper retracement, beneath the monthly S1 and weekly S3 at 1.0253/37 and towards 1.0156/29—the 200-day SMA and the major up-trend.
Traders' Sentiment
Although bullish with respect to USD/CAD SWFX traders' sentiment somewhat weakened overnight, the advantage of long positions over the short ones remains overwhelming, since the former take up 70% of the total amount, leaving the latter in a distinct minority with only 30%.
© Dukascopy Bank SA