USD/CAD prepares to attack weekly S1

"We remain cautiously bearish on the basis of positive divergence as momentum indicators have yet to confirm the fresh lows in spot."

– Scotiabank (based on Currency Watch)

Pair's Outlook

FOMC statement used to have little impact on behaviour of the USD/CAD currency pair, which fixed a minimal four-pip decrease in daily value over Wednesday. The short-term outlook remains tilted to the South, provided there is a dense supply cluster located between 1.2722 and 1.28. Here the monthly S1 is backed by the weekly pivot point and downward-sloping 20-day SMA. Dips lower are expected to be shallow, as the first weekly support line is going to meet USD/CAD as soon as at the 1.2509 mark. As for the daily technical indicators, they are still having no distinct bias in any direction,  as three "buy" studies are balanced by the same amount of "sell" signals.

Traders' Sentiment

The distribution between the long (68%) and short (32%) SWFX market positions keeps biased strongly in favour of the former.