Dukascopy - Analytics

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    USD/CAD sets eye on 1.38

    © Dukascopy Bank SA
    "Oil prices cannot continue to decline indefinitely, nor can the dollar continue to appreciate forever. At some point, both will regain some stability and the effect of previous changes on inflation will dissipate."
    - Loretta Mester, Federal Reserve (based on Bloomberg) 

    Pair's Outlook 
    On Thursday the Greenback experienced a corrective rally against the Loonie, with volatility limited by the weekly S2 from the downside and the weekly S1 from the upside. The USD/CAD is expected to edge higher for the second day in a row, if bulls manage to hold the pair above the immediate resistance—the weekly S1. Meanwhile, yesterday's gains might also be erased, as there is sufficient space for a 100-pip decline, namely towards the tough support cluster around 1.3625.

    Traders' Sentiment 
    Market sentiment is rather neutral, as only 51% of all open positions are long (previously 52%). At the same time, the portion of sell orders takes up more than three quarters (76%) of the market.
    © Dukascopy Bank SA

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