© Dukascopy Bank SA
"I can't be sure this week will be any calmer, but look for moves in the U.S. dollar to be the primary driver for the loonie for a while yet."
- BMO Nesbitt Burns (based on Globe and Mail)
Pair's Outlook
Pair is appreciating further in an unprecedented pace. Short term technicals, however, indicate a possible correction which is likely to be short lived. Main indications for this is that the pair ahs already consolidated above the 2012 high and that 1.05 should have strong psychological effects as well. In case pair fails at some point, a dip below the 1.0447 is rather unlikely.
Traders' Sentiment
Bears are continuing to push the pair higher as they continue to control 72% of all open positions in the market. Majority of pending orders (55%) belong to the bears. However, it seems that they are there to catch some short term gains rather than to turn the pair around.
© Dukascopy Bank SA