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"What we see today really is a combination of just generalized U.S. dollar weakness against most of the G10 currencies and a moderately better tone for risk and all of that adds up really to [U.S.] dollar/Canada being lower."
- RBC Capital Markets (based on Reuters)
Pair's Outlook
The US dollar inched lower today against the Canadian dollar and at the moment the pair is floating next to the 200-day SMA (1.0100). In case bearish momentum continues, 1.0078 (32.80% Fibo) is going to be an initial resistance line for currency traders. If this level is left behind, investors might encounter the second and third support lines at 1.0043 (Lower Bollinger band) and 0.9969 (S2 Weekly), accordingly.
Traders' Sentiment
The majority of traders (70%) still favors the US dollar against the Canadian dollar whereas 30% of market participants expect USD/CAD to move lower. However, pending order positioning that the market sentiment is still neutral with 50% of long and short positions.
© Dukascopy Bank SA