© Dukascopy Bank SA
"It's hard to find one smoking gun that's caused the move. People may be hedging their bets on tapering not starting in December, and the fiscal news from Canada is supporting loonie strength."
- Canadian Imperial Bank (based on Bloomberg)
Pair's Outlook
After failing to consolidate above the downtrend resistance (connecting July and August highs) pair received a bullish impetus 20-day SMA and has peaked above the mentioned downtrend. In order to prevent a pullback the pair should peak above 1.0528. That would put August high on the map. Another dip below 1.0462 could cause a sell off till 1.0421.
Traders' Sentiment
Similarly like in the rest of the market not much has changed in the loonie-greenback cross. Share of long traders decreased by a marginal 2% since yesterday and is at 72% gauge today. Bullish side of pending orders increased by 1% and is at 58% level.
© Dukascopy Bank SA