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- Kengo Suzuki, Mizuho Securities Co. (based on Bloomberg)
Pair's Outlook
During the first half of Wednesday's trading session the US Dollar continued to book gains against the Canadian Dollar, as the rate approached the weekly R2 at 1.3194. Afterwards, at 13:30 GMT, the Canadian Retail Sales data sets provided the needed impulse to push the rate above the mentioned resistance level. Due to these factors combined, a surge is expected, as the closest notable resistance is provided by the 55-day SMA at 1.3228 level. However, the pair has already passed the upper Bollinger band, which indicates at a possible consolidation and profit taking.
Traders' Sentiment
Traders remain long on the pair, as 62% of open SWFX positions are long on Wednesday. In addition, 53% of trader set up orders are to buy the Greenback.
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