© Dukascopy Bank SA
"It is also important to highlight that the Canadian dollar remains clearly overvalued on our … fair value model. Combined with the weak current account position, there are therefore good fundamental reasons for a weaker CAD."
- Goldman Sachs Group Inc. (based on The Globe and Mail)
Pair's Outlook
Pair extended it's gains after a bounce from the 1.0524, the failed to consolidate above 2013 high. We do not expect that the pair will manage to do so with ease, it might trade sideways fro some time. Peak above it would put a 2011 high on the map. In case of a failure the pair should find support at 1.0524. Dip below it could provoke a sell off till 1.04.
Traders' Sentiment
Loonie remains one of the more sold currencies across the board acquired in only 30% of all cases. Greenback at the same time is bought at 60% of cases. As a consequence market sentiment remains strongly bullish—74% of positions. In addition to this, 57% of pending orders are set to go long as well.
© Dukascopy Bank SA