© Dukascopy Bank SA
"We've had sentiment turn against Canada quite aggressively in the past few weeks."
- Bank of Nova Scotia (based on The Globe and Mail)
Pair's Outlook
Initial bearishness of the pair was neutralised once it hit the August high. However, it did not manage to inch up much higher and is hovering below the weekly PP/20-day SMA. It seems doubtful that the bulls could attempt to push the pair much higher. Even if they do, we do not think they will manage to push it above the 2011 high. A dip below 1.0549/44 would put 1.0498 on the map.
Traders' Sentiment
Bearish side of pending orders contracted by additional 2% since yesterday, 5% in the last few days, and is at equal terms with bullish side. It was expectable as bulls continue to hold 70%, the same as yesterday, of all open positions.
© Dukascopy Bank SA