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USD/CAD risks plunging back under 1.24

© Dukascopy Bank SA
"Near-term, we do not exclude the risk of USDCAD dropping back to the 1.21/1.22 range but we also think that would be an opportunity to open or add to long USD positions." 
- TD Securities (based on FXStreet)


Pair's Outlook 
The US Dollar edged down in the beginning of the week, with the 100-day SMA limiting the losses, as anticipated. Technical studies retain bullish signals today, suggesting the USD/CAD is to attempt and rally again today. The weekly PP retains its role of the closest resistance; however, we should not rule out the possibility of further weakness due to weak fundamental data. A strong support cluster around 1.2370, represented by the 20-day SMA and weekly S1, should stop the decline if it occurs. 

Traders' Sentiment 
Bulls keep gaining numbers, as 45% of traders now hold long positions. Meanwhile, the share of purchase orders added 22 percentage points. The commands now take up 57% of the market.
© Dukascopy Bank SA


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