USD/CAD 240min

Technical Outlook: Last week we noted that USD/CAD was, “USD/CAD is testing near-term channel resistance & heading into the close of the week the focus is against the 1.3430/50 zone. Initial support rests at 1.3360/70 backed by the monthly / weekly open at 1.3310. A break below Friday’s low at 1.3284 would be needed to mark a more meaningful reversal in the pair targeting 1.3252 & 1.3184”- this level now also converges on the 100% ext of the decline off the March highs.

Heading into the Bank of Canada interest rate decision tomorrow our levels remain unchanged and we’ll be looking for a break of this consolidation range. From a trading standpoint, I’ll favor selling strength while below the weekly open with our broader bearish invalidation steady at 1.3431.

  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net-long USDCAD- the ratio stands at +1.04 (50.9% of traders are long)- weak bearish reading
  • Long positions are 23.4% higher than yesterday and 20.6% higher from last week
  • Short positions are 2.2% lower than yesterday and 10.9% lower from last week
  • SSI is virtually split here but the marked increase in long exposure since the March extremes continues to highlight the risk for further USD losses near-term.

    • Relevant Data Releases

     

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