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"It's not that surprising if people are going to be fighting shy of Canadian dollar positions over the next 24 hours until the smoke clears a bit in terms of whether the bank is viewing the externalities as being more pronounced or less pronounced."
- CIBC World Markets (based on Reuters)
Pair's Outlook
USD/CAD continued its rally, set at the end of April, as concerns over Eurozone have not eased. If the bearish reversal occurs, 1.0445 (upper Bollinger band; upper resistance line) is likely to be targeted by the bears. Once this level is successfully approached, 1.0174 (PP Monthly) and 1.0008 (100-day ma) are going to be in focus among bearish investors. However, the pair to preserve longterm bullish trend as it is trading above 200-day moving average.
Traders' Sentiment
USD/CAD currency pair has become overbought to a larger extent than last Friday. At the moment only 28% of traders stay short on the currency couple, whereas 72% of them expect the Loonie price to go down further.
© Dukascopy Bank SA