© Dukascopy Bank SA
"The dismal jobs data will simply pour on the pressure for the sagging Canadian dollar, which was only spared more pain by a disappointing U.S. jobs gain in December."
- BMO Nesbitt Burns (based on The Globe and Mail)
Pair's Outlook
It seems that bulls decided to take a step back before storming 1.1 level. We expect this bearishness to last some time more, the pair might even trail as low as 1.0855, but should start appreciating in the short term. Besides 1.0899, the pair now will be facing additional, psychological, resistance at 1.0946, which might cause substantial issues in the medium to long term. It might even cause another sell off. All bearish action should find support ahead of 1.08.
Traders' Sentiment
Bulls continue to hold clear majority, 63%, of open positions. However, bullish side of pending orders contracted by 10% to 25% as 90% to 70% of pending orders, depending on the range, are set to sell the greenback against the loonie.
© Dukascopy Bank SA