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"We've seen that in some of the manufacturing data in China and this is just an extension of that, especially as it's relevant for the generation of credit and it seems that that is the driving force of a lot of Chinese growth."
- TD Securities (based on Reuters)
Pair's Outlook
Today the pair jumped above the 100-day SMA at 1.0984, after trading below it for approximately six days. We see the pair moving substantially higher once it will close above the 100-day SMA. Most likely the pair should challenge the 55-day SMA at 1.1058; however, daily technical indicators are still bearish, thus some minor retreats could be expected.
Traders' Sentiment
A considerable majority of traders stay optimistic with respect to the U.S. currency. Right now as many as 72% of them expect it to gain value against the Canadian counterpart. The distribution between the buy and sell orders is also quite stable—69% and 31% respectively.
© Dukascopy Bank SA