© Dukascopy Bank SA
"It feels like all the foreign exchange markets have shutdown along with the US government. The lack of volatility is not attracting much interest in currencies. The U.S. dollar isn't taking the hit that a lot of people thought it might with the U.S. government shutting down"
- Scotiabank Global Banking and Markets (based on The Wall Street Journal)
Pair's Outlook
It seems that 1.035 it causing more trouble than anticipated. It has failed the pair yesterday and has pushed it to 20-day SMA just slightly above the 1.30. Events of the past days suggest that there is strong support for the pair in whole 1.300/1.297 which should prevail this time as well. However, as short term technicals suggest, dips below it should not be unexpected as well. In order to uplift most of the downside risk the pair should advance above the 100-day SMA.
Traders' Sentiment
Loonie is the least bought major currency across the board. As a consequence, there is no surprise in highly bullish, 74% of traders, sentiment on the pair. Bullish side of pending orders has been holding around 60% gauge for the past week or so.
© Dukascopy Bank SA