© Dukascopy Bank SA
"The U.S. dollar rose pretty much across the board against all currencies as a result of the move, which means that dollars will be less plentiful in the future, and rate hikes are one step closed. We continue to see dollar/CAD headed to C$1.09 in three to six months."
- Bank of Montreal (based on Bloomberg)
Pair's Outlook
Pair received a substantial bullish impetus after peaking above the weekly PP yesterday and is testing 1.07 at the moment. It seems this area has held the initial rally, but we expect that bulls will continue to push on. It seems doubtful they will manage to maintain such pace and trend, but rather will have to take a step back and ease up the rally for some time. Maybe even just to keep the pair hovering below the 1.07 for the time being. In case it shows a solid close above the 1.07, 1.0762 should be challenged shortly.
Traders' Sentiment
Bulls continue to dominate the market. At the moment they account for 70% of market participants. That is 3% less than yesterday, but majority of pending orders, 55% (the same as yesterday) are set to go long as well.
© Dukascopy Bank SA