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- Douglas Porter, deputy chief economist, BMO Capital Markets (based on Financial Post)
Pair's Outlook
The pair is unexpectedly continuing its downward movement, and is currently moving closer towards the weekly S1 at 0.9972. However, RSI (14) is likely to give a Buy signal in near term, so a bullish correction is highly probable. In such case, USD/CAD would be en-route towards the 200-day SMA at 1.0041.
Traders' Sentiment
We can currently observe a perfect balance between bulls and bears, as market participants evaluate both scenarios as equally probable. The current market sentiment is strongly supported by the aggregate market indicators' signals (neutral for daily and monthly timeframes).
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