© Dukascopy Bank SA
"Investors are disappointed, but there's no crisis [in the USA]. We're getting stagnation and slightly below-potential growth, but we're nowhere near 2009 or another period where it was a no brainer that we need more stimulus."
- Citigroup (based on MarketWatch)
Pair's Outlook
USD/CAD made a lower start this week, erasing some of the Friday gains. If bearish mood intensifies, investors might fix profits at 1.0099 (200-day SMA). A breakout of this level is likely to open 1.0043 (61.80% Fibo) and 0.9969 (S2 Weekly) in case bearish momentum gains strength. To keep the bullish inertia, the pair has to close above the 55-day SMA (1.0198).
Traders' Sentiment
The share of market participants holding long positions changed as 65% of traders are bullish whereas 35% of traders expect the pair to deteriorate further. Within 100 points from the present market price, 67% of investors anticipate the US dollar to deteriorate against the Canadian dollar over the middle term.
© Dukascopy Bank SA