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USD/CAD recovers some value after three-day plunge

© Dukascopy Bank SA
"We think the heavy pressure on USDCAD over the past week is abating a little and while a clear low/reversal is not obvious in terms of price action at this point (leaving the door open for a drop to the high 1.21s)." 
- TD Securities (based on FXStreet)


Pair's Outlook 
The American Dollar did rebound yesterday, but not as much as anticipated. Upon reaching the weekly S1 near 1.2364, the USD/CAD was pushed back even under the monthly pivot point; ultimately, the Buck even failed to rise above the 1.23 major level. However, the Greenback is expected to surge today, ignoring the monthly PP resistance. Furthermore, a strong resistance cluster rests just under the 1.24 area, which should limit the gains. As a result, the US Dollar is likely to close trade around 1.2360, while technical studies are supporting the positive bias. 

Traders' Sentiment 
Bullish SWFX traders' sentiment improved, as 53% of positions are long today. Buy commands also edged up, from 44 to 46%.
© Dukascopy Bank SA


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