Dukascopy - Analytics


    472.50 6.00/10
    83% of positive reviews

    USD/CAD under the risk of extending decline

    © Dukascopy Bank SA
    "USD/CAD looks very overdone to the topside and may be populated with a lot of "tourists" but dips are likely to be shallow and should be bought for a run at 1.50 into Q2 2016." 
    - Westpac (based on FXStreet) 

    Pair's Outlook 
    BoC's decision to leave the overnight interest rate unchanged reinforced the Loonie on Wednesday, causing the USD/CAD to drop to the 1.45 level. Nevertheless, technical indicators shifted to the bullish side today, implying the Greenback might climb back over the 1.46 area. The Bollinger band and the weekly R1 form a resistance around the 1.47 mark, whereas immediate support is represented by the monthly R2 and the weekly PP circa 1.44. However, the bearish momentum has been prevailing since the beginning of the week and might take over the market today as well. 

    Traders' Sentiment 
    Bearish traders' sentiment returned to its Tuesday's level of 72%, while the number of purchase orders declined from 70 to 46%.
    © Dukascopy Bank SA

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