USD/CAD to make a U-turn at 1.20

Since mid-March the exchange rate has fallen from 1.28 to 1.20. However, considering where the currency pair is now, the bears are unlikely to remain in control for any longer. Demand at 1.20 is not only provided by the 200-day SMA, but also by the multi-month up-trend. As a result, we hold a bullish bias towards the US Dollar, which appears to be in a perfect position to recover, also taking into account the monthly technical studies.

The attitude of the SWFX market participants remains positive towards the Greenback, but there are relatively less bulls (57%) than before the weekend (60%). At the same time, the market is equally divided between the buy and sell commands.