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"The retail sales are just icing on the cake for the loonie. The retail-sales number along with the Ivey and jobs data and wholesale sales figures kind of suggest the Canadian economy faces headwinds, not unlike other developed-market economies, so that is going to be somewhat weighing on the loonie."
- GMP Securities LLC (based on Bloomberg)
Pair's Outlook
It seems that the pair has gained momentum after receiving a bullish impetus form the 100-day SMA few days ago. If it manages to consolidate above the 1.0512 we could expect 1.06 be tested in the nearest future. If it fails to do so we could expect the bulls to capitalize on their gains and bears pushing the pair to 1.04. Some minor bearish correction should be expected in any case.
Traders' Sentiment
SWFX traders do not seem to be willing to take profits just yet, anticipating even higher trading levels in the future, this is derived from the fact that the percentage of long positions held went up to 75% at the time when USD/CAD was on the rise. Among the pending buy (54%) and sell (46%) orders the gap is substantially smaller.
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