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"The Canadian dollar has kept pace with the U.S. dollar today, and that's because the Fed was optimistic about the U.S. economy. Better growth in the U.S. will spill across the border to Canada."
- forexlive.com (based on Bloomberg)
Pair's Outlook
Pair continues to recover after touching weekly S1/monthly PP area and at the moment is retesting downtrend resistance (connecting July and August highs). We do not think that it has gained enough momentum to advance above it. However, we do not completely neglect the probability of a peak above it as well. In order to ignite a rally the pair should peak at least till monthly R1. That would put August high on the map. In case of one more failure the pair should dip till 55 and 100-day SMAs, but find support there.
Traders' Sentiment
No change in market sentiment can be seen in greenback-loonie cross. Bulls continue to hold 70% of all open positions on the pair and 60% of pending orders are set in their favour as well.
© Dukascopy Bank SA