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- Bank of Singapore Ltd. (based on Bloomberg)
Pair's Outlook
The US Dollar dropped more than 160 pips against its Canadian counterpart on Monday, slumping back under the 1.28 major level. The pair now faces a tough support, represented by the Bollinger band, the monthly and the weekly S1s, around the 1.27 psychological level. A breach of this cluster is likely to set the USD/CAD currency pair on a bearish path towards the support line near the 1.23 mark. However, a positive outcome is also possible, as the Buck was unable to close below the 1.2750 level since July 2015. Furthermore, technical indicators are giving mixed signals in the daily timeframe.
Traders' Sentiment
Today 59% of traders hold long positions, compared to 51% on Monday. Meanwhile, the portion of orders to acquire the American Dollar increased from 52 to 57%.
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