USD/CAD erodes SMAs

USD/CAD moved even closer to the rising support line that has been in force since May and is the lower boundary of the major up-trend channel. Accordingly, a possibility of a rebound from 1.0375 increases, also considering the presence of the 100-day SMA and the monthly S1 nearby. In case of an unlikely scenario, namely violation of these supports, the area formed by the 200-day SMA, 2009-2010 lows and the bullish line at 1.0285 and below will be exposed.

Being that the Canadian Dollar continues to appreciate relative to its southern peer at an accelerate pace, there are more and more traders believing USD/CAD has already bottomed out and is about to start recovering—this is the view of 72% of SWFX market participants.