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    Down-trend struggles to contain USD/CAD volatility

    © Dukascopy Bank SA
    "Ultimately, the [US] dollar is still likely to trade on a weaker footing. We adjusted lower on the outlook for U.S. growth last week and obviously the data on Friday showed the labour market is improving. But we need to see evidence of that continuing." 
    - Bank of Tokyo-Mitsubishi-UFJ (based on Reuters) 


    Pair's Outlook 
    Although the US Dollar was able to outperform its Canadian counterpart last Friday, from a technical perspective, the pair is likely to undergo a correction today. The three-week trend-line is providing immediate resistance and should cause USD/CAD to experience a mild decline. Furthermore, technical studies also imply the bearish momentum is to prevail today; however, the weekly PP and the 55-day SMA form a substantial support around 1.3880 and could cause the Greenback to even remain relatively flat circa the 1.39 psychological mark. 

    Traders' Sentiment 
    Traders' sentiment remains unchanged, with bulls taking up 52% of the market, while the share of buy orders dropped from 63 to 40%.
    © Dukascopy Bank SA

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