© Dukascopy Bank SA
"They're still really looking for a weaker currency to flow through into the export sector and that has been slower to materialize."
- CIBC World Markets (based on Reuters)
Pair's Outlook
Past week the pair fluctuated between 1.1000 and 1.0860; however, at the end of the week it closed almost at the same level it opened. This week the greenback fell below 100-day SMA once again; although, we see the pair breaking it and approaching the major level at 1.1000. Short term technical indicators suggest the pair falling and we also think that drawback is possible; however, after slipping towards monthly S1 an advance is expected.\
Traders' Sentiment
An overwhelming majority (75%) of the market participants believe that the greenback is going to regain its bullishness and increase in value relative to the Loonie. As for the orders placed 100 pips from the spot, 60% are set to buy.
© Dukascopy Bank SA