© Dukascopy Bank SA
- Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
On Monday the USD/CAD currency pair weakened, as the Loonie received a boost from a rise in oil prices. As a result, the first support area was reached, which successfully prevented the US Dollar from sustaining even sharper losses. Although the same cluster keeps providing immediate support today, the given pair risks dropping to a 6-month low of 1.2831, with the second target being the weekly S2 at 1.2786. However, technical studies retain their mixed signals, suggesting that a possibility of a rebound exists, with the nearest resistance located around 1.3060, represented by the weekly PP and the 20-day SMA.
Traders' Sentiment
Market sentiment improved over the day, as 56% of traders now hold long positions, compared to 52% on Monday.
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