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"From the positive standpoint, there's no taper, which suggests the loonie should go up versus the U.S. dollar, but it also proves a bit of a headwind to Canadian growth, to suggest U.S. growth is coming in. The loonie, I think, is reacting less positively than some of the other currencies versus the U.S. dollar because of concerns over follow on effects for the Canadian economy."
- Macquarie Capital Markets (based on Bloomberg)
Pair's Outlook
Pair bounced from the support line at 1.0275, but seems to be struggling with weekly PP/20-day SMA. As a consequence we don't see the pair advancing far at the moment. To uplift most of this risk the pair should show a solid close above 1.035. In case the pair fails at any of these levels we could see it trailing to 1.0252. Dip below it would put September low (1.0182) on the map.
Traders' Sentiment
Bulls continue to dominate in the market. Today they account for 73% or market participants. That is 2% more than yesterday. Bullish side of pending orders increased by 7% and is at 63% today.
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