© Dukascopy Bank SA
"The weakness in the loonie reflects the uncertainty regarding the U.S. shutdown, and the possible economic implications it may have for the Canadian economy. The market has been optimistic about resolution, but until the uncertainty is cleared up the Canadian currency will show stress."
- HSBC Holdings Plc. (based on Bloomberg)
Pair's Outlook
Weekly pivot at 1.042 caused a major sell off of the pair which channels further bearishness. It seems very likely that we will see 20-day SMA being tested rather soon. If the pair dips below it 200-day SMA fails to support the pair we should see it trailing towards 1.028. Only a solid close above 1.042 would uplift most of this pressure and put 1.048 on the map.
Traders' Sentiment
Situation in the market remains mainly unchanged. Clear majority (73%; -3% during the weekend) of open positions is still held by the long traders. Distribution of pending orders changed just marginally, and remains in favour of the bulls with the gauge of 63%.
© Dukascopy Bank SA