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"We are seeing a bit of Canadian dollar strength being driven by risk appetite really throughout global markets."
- Cambridge Global Payments (based on Reuters)
Pair's Outlook
After topping out at C$1.46 USD/CAD returned back to the support level implied by the 2004 high. Additional bullish pressure is created by the trend-line that was especially topical in October and November of the previous year. As a result, there is a solid chance the Greenback will rebound from 1.39 and thus resume its recovery that was started back in 2011. However, if this is not the case and the price falls deeper, additional support is at 1.3815, which is the 55-day SMA.
Traders' Sentiment
The sentiment towards USD/CAD stays mildly bearish, as 58% of positions are short. In the meantime, the portion of orders to purchase USD rose from 42 to 57%.
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