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"It looks like the central bank cavalry is ready to rise to the rescue again if needed, and the instinctive market reaction is risk-on."
- Wells Fargo (based on Reuters)
Pair's Outlook
USD/CAD is trading bearishly as investors expect the Canadian monthly manufacturing sales to improve. If the bearish mood holds, 1.0174 (PP Monthly) is going to be the first support among bearish investors. A breakout here would expose 1.0088 (200-day ma) and 1.0009 (S1 Monthly; 100-day ma).
Traders' Sentiment
The majority of traders (66%) have bought the American Dollar against the Canadian Dollar, making the sentiment bullish on USD/CAD. Within 100 pips from the current market price, bullish sentiment eases as 63% of market participants anticipate a continuation of the USD/CAD rally.
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