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"We have had a bearish view on the Canadian dollar since mid-December because of the negative terms-of-trade shock resulting from the oil price differential between WCS and Brent."
- Nomura Securities (based on The Globe and Mail)
Pair's Outlook
Pairs 10 day rally was interrupted yesterday when it touched 1.03 (weekly R1). Although pair contracted by 40 pips after this, bullish impetus persists and it is likely that at the moment pair is driven by momentum. Medium term outlook is positive suggesting we should see pairs advance further. Major obstacle for that should be the mentioned 1.03 level.
Traders' Sentiment
Similarly to the opinion of major market participants, overall sentiment in the market is bearish as 63% of traders are short on the pair. Although majority of pending orders are to go long, their share (53%) seems not to be enough to have significant impact.
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