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"It's good for the U.S. economy, it's good for Canada so it should be good for the currency and the Canadian dollar does stand to benefit disproportionately with the U.S. coming back to business in terms of the government. The price of oil is stronger as well, so it's that commodity story, it's risk assets, it's taking out one of the major sources of uncertainty."
- Toronto-Dominion Bank (based on Bloomberg)
Pair's Outlook
Pair seemed to be capped for some time, but today we saw it falling through quite a few support levels. At the moment it is trading below the 200-day SMA. In orders to prevent it trailing lower the pair should return back above 1.035. In case the 1.0275, which kept the pair supported for three weeks in September and October, we could expect the pair to dip to 1.0183.
Traders' Sentiment
As mentioned before, greenback is one of the most bought major currencies cross the board. Loonie, on the other hand, is one of the least bought. This explains the fact that 75% of traders are long on the pair and 63% of all pending orders are se to go long on the pair as well.
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