© Dukascopy Bank SA
- Nomura (based on Business Recorder)
Pair's Outlook
Even on Friday the Buck was unable to cross the 1.31 major level, as it slumped more than 150 pips against the Canadian counterpart that day. Poor US labour data caused the USD/CAD to reach the monthly PP at 1.2914. The monthly PP is now the closest support, also reinforced by the 55-day SMA, which should technically cause the exchange rate to rebound today. The nearest area to limit the gains lies around the 1.30 major level in face of the 23.60% Fibo, the weekly PP and the 20-day SMA. However, according to technical studies, either scenario is possible, thus, another small drop towards 1.2914 is not out of the question.
Traders' Sentiment
There are 59% of traders being long the Buck (previously 61%), whereas the number of sell orders inched down from 56 to 53%.
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