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USD/CAD risks falling under 1.45

© Dukascopy Bank SA
"Sustained weakness in the price of oil continues to weigh on the Canadian economy. The BoC would need to cut at least 50 bp this year to partially counteract the continued slide in crude oil prices." 
- Barclays (based on CNBC) 


Pair's Outlook 
The US Dollar ignored weak US Core Retail Sales data on Friday, as the Loonie suffered more from continuously falling oil prices. As a result, the USD/CAD ended the week at 1.4536, edging even higher over the weekend after sanctions on Iran were lifted. Today the Greenback is likely to undergo a correction, with the Bollinger band attempting to prevent the pair from plunging under the major level of 1.45. Technical studies are unable to give any clear sense of direction, but USD weakness should eventually lead to a retest of the up-trend around 1.39-1.40. 

Traders' Sentiment 
Slightly less traders retain a negative outlook towards the Buck, namely 73%. The percentage of buy orders spiked from 36 to 63%.
© Dukascopy Bank SA


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