Canadian Greenback (USD/CAD) Forecast:Canadian Greenback Outlook: Is USD/CAD Headed for a Reversal?The Canadian Greenback has suf
Canadian Greenback (USD/CAD) Forecast:
Canadian Greenback Outlook: Is USD/CAD Headed for a Reversal?
The Canadian Greenback has suffered a collection of losses versus its major counterparts this month, largely ensuing from a dovish shift within the Financial institution of Canada’s coverage path. The losses have allowed USD/CAD to retake the 200-day transferring common and strategy horizontal resistance round 1.3350. And not using a change within the elementary forces influencing USD or CAD, the resistance that has held since early August could quickly fall, permitting USD/CAD to stave off one other reversal decrease.
USD/CAD Value Chart: Every day Time Body (January 2019 – November 2019) (Chart 1)
A breakthrough might see the pair check the longer-term downtrend in USD/CAD – probing the descending trendline from January of this yr. That being stated, the medium-term outlook for the pair might see it return to the 200-day transferring common, however I keep a bullish bias for the speedy future. To that finish, IG Client Sentiment Data reveals retail merchants stay overwhelmingly net-short USD/CAD, suggesting they’re assured resistance will maintain and are snug calling an area high across the present spot value. Since we sometimes take a contrarian view to crowd sentiment, retail positioning suggests USD/CAD could also be headed increased nonetheless.
If, alternatively, retail merchants…