© Dukascopy Bank SA
"The CAD positioning is getting closer to extremes, which could leave CAD vulnerable to short covering if sentiment shifts."
- Bank of Nova Scotia (based on The Globe and Mail)
Pair's Outlook
Pair skyrocketed through the resistance levels yesterday and peaked till 2013 high today. We expect it to take a step back as at least some of the bulls will be willing to capitalise their gains and wind up positions. After that we might expect another, at least a short term, rally. Then it might peak as high as monthly R3. In case of a failure the pair should find support with at monthly and weekly R1.
Traders' Sentiment
Market sentiment became noticeably bullish. Share of long positions increased by 3% and is at 56% gauge. In addition to this, share of long pending orders increased by 12% and is at 54% level today.
© Dukascopy Bank SA