USD/CAD capped by 1.10

Yesterday USD/CAD touched upon the formidable resistance area at 1.10, consisting of the 2009 September high and the 17-month up-trend. As a result, bears took control of the market and sold off the U.S. Dollar down to the monthly R3. However, the downward correction may extend towards the monthly R2, which will attempt to limit the losses together with the three-month up-trend.

According to the sentiment of the market, USD/CAD is not expected to stop surging—61% of traders are presently holding long positions, whereas their 10-day average share stands at 57.5%. As for the orders placed near the current price, they reveal that a majority (71%) of market participants are planning to sell the buck.