USD/CAD lost battle for 1.27

Despite a run all the way up to 1.28 yesterday, USD/CAD was unable to gain a foothold above 1.27, and the pair is now looking for support at 1.2640, represented by the monthly PP and 20-day SMA. Still, the upward momentum should be preserved, and the US Dollar will then aim for the resistance trend-line at 1.29. But if 1.2640 fails to withstand the selling pressure, additional supports are at 1.25769/46 and below 1.2500.

Sentiment of the SWFX traders somewhat deteriorated, but the bulls (64%) still enjoy a comfortable advantage over the bearish market participants (36%). At the same time, the share of buy orders went up from 58 to 62%.