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USD/CAD is required to pierce the 100-day SMA to ensure uptrend

© Dukascopy Bank SA
"The steeper Treasury yield curve is indicating that you play the reflation trade, which is long food and energy. Food inflation is coming faster than the Fed thinks or wants."
- Equity Armor Investments (based on CNBC)

Pair's Outlook 
The USD/CAD underperformed at last week's end, as the pair edged lower rather than rallying. Volatility to the upside did reach the 1.24 major level, but was immediately pushed back so hard, it caused the Greenback to suffer a 14-pip loss against the Loonie. Today the US Dollar almost reached the 1.23 level, but managed to regain the bullish momentum in midday. However, the 100-day SMA around 1.2370 is now providing resistance and not allowing the pair to advance. Moreover, fundamental forecasts suggest the USD/CAD is to sustain more losses, while technical studies retain mixed signals. 

Traders' Sentiment 
The share of long positions slid from 55 to 54%, while the number of commands to acquire the Buck declined from 51 to 43%.
© Dukascopy Bank SA

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