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"We are in a strange world where the Canadian dollar should be significantly lower"
- Laurentian Bank Securities (based on Reuters)Pair's Outlook
Overall the outlook appears to be strongly bullish, mainly due to clearance of the 200-day SMA that prevented emergence of a recovery in a conjunction with a psychological level around parity, as round numbers are generally believed to be considerable obstacles in the way of price moves. Right now USD/CAD is well-positioned for further gains, but the bullish impetus looks exhausted and lacks strength to extend success. Technical indicators too do not suggest a quick surge for the time being.
Traders' Sentiment
Market participants are becoming increasingly bullish towards USD/CAD, already 56% of them are on the buy side, while the portion of bears contracted, being 44% of the total amount of traders at the moment. As for the orders, 59% of them are to buy the Dollar and 41% are to short-sell it.
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