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"If you couple the CPI numbers that signal inflation is stagnant or non-existent ... with the slump that we're seeing in oil prices, it's only natural that we would see the Canadian dollar soften as it has."
- USForex (based on Reuters)
Pair's Outlook
USD/CAD keeps recovering from 1.28. A new challenge for the rally is represented by the 55-day SMA at 1.3160, a close above which will imply a test of the monthly pivot point at 1.3260. Should the increased demand for the Greenback persist, the September maximum at 1.3460 could potentially fall the next victim to the current bullish momentum. The overall outlook will remain positive as long as the 15-month up-trend (presently at 1.26) stays intact.
Traders' Sentiment
The percentage of bulls in the market fell even further, but so far the difference between the numbers of longs (47%) and shorts (53%) is insignificant. The distribution between the buy and sell orders is the same as on Oct 23: 79 and 21% respectively.
© Dukascopy Bank SA