© Dukascopy Bank SA
- BAML (based on Reuters)
Pair's Outlook
Even though the US Dollar appreciated only 20 pips against the Canadian Dollar on Friday, the 1.31 target was still reached, as expected. The USD/CAD currency pair has been in a bullish trend for three straight weeks now, and a U-turn is unlikely to occur just yet. Technical indicators are now giving bullish signals in the daily timeframe, suggesting that the trend is likely to continue and the pair to edge higher today. The nearest area to limit the gains is represented by the Bollinger band and the weekly R1, but a breach of the 1.32 major level is required for that resistance to be reached.
Traders' Sentiment
Traders' sentiment is now equally divided between the bulls and the bears. At the same time, the number of orders to acquire the US Dollar slumped from 71 to 45%.
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