- Commonwealth Bank of Australia (based on Bloomberg)
The US Dollar had been appreciating against most currencies for the past week, as oil prices fell, and the Canadian dollar was no exemption from this phenomenon, as the pair surged for six consecutive trading sessions. However, it all stopped on Friday, as the Greenback lost strength and oil surged. The USD/CAD pair declined from 1.3087 levels on Thursday to 1.2889 on Friday. The rate broke the channel up pattern and it fell below the monthly PP. At the moment, the currency exchange rate is struggling with the 55-day SMA at 1.2880. If it passes the 55-day SMA, it might go down as far as the 1.2808, where the weekly PP is located at.
Traders are slightly bullish on the pair, as 50.22% of all open positions are long. In addition, pending orders in the 100-pip range are 77% long.