© Dukascopy Bank SA
"Investors seem to have put an inordinate amount of faith in one month's trade data from China."
- TD Securities (based on Reuters)
Pair's Outlook
Neither the monthly nor weekly pivot points were capable of holding the currency pair. Both of them were breached yesterday and now it leaves the support at 1.0302/1.0288, formed by the weekly S1 and 100-day SMA (it was also important throughout 2009 and 2010), to deny USD/CAD access to lower levels, namely where the 200-day SMA merges with the major up-trend line.
Traders' Sentiment
Even though the share of long positions decreased, the change (minus two percentage points) did not alter the fact that a bullish scenario is by far the dominant view among the participants in the SWFX marketplace, considering that bulls still take up overwhelming 70% of the market.
© Dukascopy Bank SA