© Dukascopy Bank SA
"The trend in housing starts decreased slightly in January, while the inventory of newly completed and unabsorbed units saw a modest downward trend in the last half of 2013."
- CMHC (based on CBC)
Pair's Outlook
Pair seemingly regained bullish bias, but failed to gain momentum on it and at the moment is consolidating slightly below the 20-day SMA. It seems that recent selloff was a bearish correction of the Jan-Feb rally. Having that in mind it is hard to expect full pledged rally any time soon. Even if it takes place, the 2014 high is likely to push the pair back down. All in all, the pair is very likely to hover below 1.11 for a few more days and start appreciating afterwards.
Traders' Sentiment
Bulls continue to hold 54% of all of the open positions on the pair, but we are likely to see some major changes soon as bearish side of pending orders increased by 10-15% and is at 65-75% range .
© Dukascopy Bank SA