Dukascopy - Analytics

    Dukascopy

    472.75 6.25/10
    83% of positive reviews
    Real

    USD/CAD anchored around 1.34

    © Dukascopy Bank SA
    "Instead of a rate cut, look for an all-talk, no action dovish tilt from the Bank of Canada in its message … Steven Poloz could take a page out of Mark Carney's playbook, using 'forward guidance', although not quite a full commitment, to steer the currency where it needs to be." 
    - CIBC World Markets (based on WBP Online) 


    Pair's Outlook 
    On Tuesday the US Dollar took the upper hand and surged against its Canadian counterpart, amid expectations of a dovish BoC statement the next day. Trade closed on top of the weekly PP, which is now providing immediate support for the USD/CAD. Furthermore, the weekly PP is also located on top of the 1.34 psychological level, bolstering this support area. As a result, the Greenback could soar above the 1.35 mark, where the weekly R1 acts as the nearest resistance, and even put the 20-day SMA and the down-trend around 1.3605 to the test. However, according to technical studies, the USD/CAD might even fall towards the up-trend around 1.32. 

    Traders' Sentiment 
    Bullish market sentiment returned to its last Wednesday's level of 55%, while the share of purchase orders increased from 42 to 60%.
    © Dukascopy Bank SA

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