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- BMO Capital Markets (based on Reuters)
Pair's Outlook
The greenback is still struggling to regain its bullishness against the Loonie, it is trading around 200-day SMA at 1.0864 already for five straight days. Even if the pair slides below the 200-day SMA we think that the major level at 1.0850 should stop the pair from falling. For the bullish scenario to happen the U.S. Dollar has to break the weekly and monthly PPs at 1.0880/88 and later the 1.09 level. That will not be an easy task; however, we see that happening as the pair most likely will be pushed higher by its bulls and 200-day SMA.
Traders' Sentiment
The SWFX traders are getting less and less convinced that the greenback could fall against the Loonie. The bears are in a distinct majority, as they take up 72% of the market.
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