© Dukascopy Bank SA
"Given diminished expectations of a cut in interest rates, the loonie now looks cheap compared with its recent relationship with yield spreads."
- CIBC (based on The Globe and Mail)
Pair's Outlook
Pair is continuing to trade in a narrow range without showing any clear bias to any side. Today we saw a dip till the monthly PP/20-day SMA, but it pushed the pair back till weekly PP. We expect this trend to continue further, but short term dips of sell offs remain possible. A solid close below monthly PP/20-day SMA could provoke a sell off till 1.09. A peak above weekly R1 would put Feb and 2014 high on the map.
Traders' Sentiment
Share of bulls in the market returned the 61%, 3% increase since yesterday. However, bullish side of pending orders contracted by 25-40%, till 27-38%, depending on the range, suggesting we might see a major change in the market sentiment in the nearest future.
© Dukascopy Bank SA