© Dukascopy Bank SA
"CAD weakens over the next six to eight months. What we get is broad based U.S. dollar strength just on the back of the recovery that is relatively robust, as well as speculation as when tapering occurs and whether it's a steady pace or a little bit more aggressive than that."
- Bank of Nova Scotia (based on Bloomberg)
Pair's Outlook
Being that the up-trend that may be drawn though the valleys charted since the end of October still remains intact, USD/CAD retains a bullish bias in the near-term. If this support at 1.0609 fails to withstand the selling pressure on the other hand, the decline may extend down to the major bullish line at 1.0399, where it is currently reinforced by the 200-day SMA.
Traders' Sentiment
Seems that the traders started to rapidly square off the bullish positions, since their portion in the market dropped from 71% to 66% during the day. A similar but less distinct pattern is observed with the orders—there are less traders planning to acquire the U.S. Dollar than yesterday.
© Dukascopy Bank SA