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"I think the market was pretty long of Canadian dollars in general and we're trading through levels that continue to see positions get cut. With the Bank of Canada meeting last week, it's just taken a little bit of shine off the currency."
- Bank of Montreal (based on Bloomberg)
Pair's Outlook
Pair started the week humbly, but, as predicted, is testing the resistance of 1.01. Daily technicals do not suggest conclusive readings and quite a few of the indicators give strong sell signal suggesting that we might see a bearish correction any time soon. This might cause pair to drop to 1.005 where it might spend a few sessions. It is a bit too early to talk about medium term outlook, but it seems that pair will stay above parity for quite some time now.
Traders' Sentiment
Outstanding positions on the pair are almost equally divided between the long and short traders. However, it seems that bulls are likely to gain the upper hand as 60 of pending orders are to go long.
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