© Dukascopy Bank SA
"This sort of broad two-way bouncing around in the dollar is what we are going to see in the near-term, until the market has some certainty on Fed tapering, and that probably won't come until the Fed actually announces it."
- RBC Capital Markets (based on Reuters)
Pair's Outlook
Even though the recovery came into contact with a formidable resistance at 1.0395/79 yesterday, it seems to have gained a toehold above the weekly PP, which is likely to be used as a springboard for the advancement towards the long-term target at 1.0701, a road to which lies through tough levels, such as the monthly PP at 1.0379 and monthly R1 at 1.0519.
Traders' Sentiment
The portion of the long positions added one percentage point and thereby grew up to 74%, meaning that an overwhelming majority of traders are expecting a robust recovery, whereas merely 26% think differently and continue to see risks to the rally. The loonie is not unpopular solely in this particular pair, it is in fact one of the least preferred currencies overall, acquired in only 27% of trades.
© Dukascopy Bank SA