© Dukascopy Bank SA
"The broader [U.S.] dollar strengthening trend remains very much alive."
- Barclays (based on Reuters)
Pair's Outlook
It seems that USD/CAD has finally bottomed out, following the sell-off since the beginning of July. This assumption is premised upon the key support area around 1.0253 being able to successfully underpin the price. Consequently, soon the pair is expected to commence a recovery. Apparently, this is going to occur beyond this week, since the daily technical indicators continue giving "sell" signals, thereby reminding us of the downside risks that should be limited by 1.0120.
Traders' Sentiment
The difference between the amounts of bulls and bears in the market increased, though insubstantially, by two percentage points. Now the share of long positions is 73%, while the share of short ones is 27%. Among the pending orders, 55% of them are bids for the U.S. Dollar.
© Dukascopy Bank SA