Canadian Greenback Outlook:Canadian Greenback Outlook: USD/CAD Surges, Is This The Backside?A certifiabl
Canadian Greenback Outlook:
Canadian Greenback Outlook: USD/CAD Surges, Is This The Backside?
A certifiably dovish Bank of Canada rate decision sparked a formidable Canadian Greenback selloff on Wednesday, doubtlessly shifting the longer-term outlook for the Loonie. Consequently, USD/CAD’s current bounce off help round 1.3050 may mark a neighborhood backside. Now, the pair is quick approaching the close by 200-day transferring common round 1.33 which may look to briefly stall a continuation larger.
USD/CAD Value Chart: Each day Time Body (January – October) (Chart 1)
To that finish, USD/CAD will look to capitalize on close by help if consolidation is required. Instant buoyancy might be offered by a horizontal trendline from September’s swing low round 1.3133, whereas the road within the sand stays barely above the 1.30 stage. Though the pair enjoys a number of zones of close by help, they is probably not required – particularly if shopper positioning continues to shift.
Wednesday’s abrupt break larger noticed a corresponding decline in shoppers with lengthy publicity as evidenced within the chart above. With longs and shorts rapidly approaching parity, continuation of the development may see bears overtake USD/CAD bulls. Whereas sometimes a contrarian indicator, a powerful shift in positioning resembling this implies retail merchants are…