© Dukascopy Bank SA
- Mizuho Bank Ltd. (based on Bloomberg)
Pair's Outlook
At the second part of yesterday's trading day selling pressure gained momentum and accordingly USD/CAD dropped below the weekly and monthly PP; however, the decline was stopped by the 20-day SMA at 1.1328. Nonetheless, today is a completely different day and the pair is poised for a recovery and most likely it will breach the weekly and monthly PPs at 1.1359/62. In the mean time, this year's high at 1.1467 remains the target.
Traders' Sentiment
There is strong conviction in the market that the US Dollar is still heavily undervalued, being that as many as 73% of open positions are currently long. As for the orders, the gap between buy (42%) and sell (58%) have narrowed.
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