Dukascopy - Analytics

    Dukascopy

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    USD/CAD tumbles at the beginning of the new month

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    "The decline we've seen in energy prices is going to disproportionately hit the Canadian economy this year." -
    Franklin Templeton Solutions group (based on Bloomberg)



    Pair's Outlook
    The USD/CAD pair failed to continue the consecutive half- year appreciation and the month of February started with a noticeable slump. The weekly chart shows a strong resistance level at 1.273, which is the 2005 May high. A dive lower will be supported by April 2009 high at 1.246 level. As a matter of fact, the current slight correction seems to be reasonable as the pair is highly overbought since December 2014.


    Traders' Sentiment
    The USD/CAD pair lost some of its bullish traders since only 35% of all are holding long positions. The pair will be likely sold once it moves 50– pips, 73% of market participants placed the order on a short side.
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