© Dukascopy Bank SA
Supports: 1.2118; 1.2094; 1.2045
Outlook
Yesterday's bearish reaction has failed to continue, and today the EUR/CAD currency pair has already managed to cross the weekly PP at 1.2201, and the price is slowly approaching the 20-day SMA at 1.2267, which might slow down the prevailing uptrend, however, if it is broken, then next resistance at 1.2357 (weekly R2) will probably bring some bearish impetus. In addition, RSI indicator shows neutral signal, and it is expected to remain unchanged in the nearest future.
Traders' sentiment
SWFX market participants are optimistic regarding the potential strength of the single European currency, as 70% of traders hold long positions and only 30% of traders hold short positions. In contrast, the distribution of orders clearly spots bearish trend expectations, since only 33% of traders ordered to buy and about 67% ordered to sell the Euro, therefore this might change the current trend in the future.