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"The Canadian dollar has been trading a lot with risk appetite over the last few days and weeks. With all the uncertainty it's still a bit hard to see a big rally"
- Nomura Securities (based on Reuters)
Pair's Outlook
Forces of demand and supply proved to be equal today as well, resulting in virtually no change in USD/CAD exchange rate for two days in a row, even though most of daily indicators were giving "buy" signals. Considering presence of a formidable resistance just above the current price, formed by a psychological level and the 200-day SMA, emergence of a long-term decline is a more likely scenario, although being that a recent rejection of the pair by it was weak, this casts doubt on the ability of the area to contain rallies.
Traders' Sentiment
Traders' sentiment is unchanged since yesterday and majority of positions (60%) opened on USD/CAD are long. Accordingly, 40% of traders expect the loonie is about to win some ground against the buck. At the same time the ratio of buy to sell orders is 57% to 43%, respectively.
© Dukascopy Bank SA