© Dukascopy Bank SA
"Weaker ADP is helping to weaken the dollar, it's all algorithmic trading as macro investors are unlikely to be very-much surprised. Whatever happens to the Canadian dollar now, it's starting to be time to consider building bearish positions for the move lower in the next few months."
- Societe Generale SA (based on Bloomberg Businessweek)
Pair's Outlook
Pair reached new relative high which have put weekly and monthly R1/downtrend resistance at 1.0512/28. If the pair would advance above it we might expect it to reach August high. However, we should pay attention to the fact that 1.06 is the highest limit of expectations of 75% major market participants. In case of the failure at 1.0512, the pair might dip below the 10th of October peak at 1.0420.
Traders' Sentiment
Bulls continue to hold overwhelming majority (74%) of open positions in the market. Bullish side of pending orders, however, decreased by 5% and is at 54% gauge.
© Dukascopy Bank SA