© Dukascopy Bank SA
"The market is still kind of digesting the Yellen comments and it certainly seemed to be low for longer. If the economy in the states needs more stimulus, it's not going to be a great feed-through in to the Canadian economy, so I think there's limits to how far we'll see the Canadian dollar strengthen."
- Canadian Imperial Bank of Commerce (based on Bloomberg Businessweek)
Pair's Outlook
Pair failed to consolidate above the downtrend resistance (connecting July and September highs) as it failed at weekly and monthly R1. It did found support with the weekly PP/20-day SMA and is showing mild bullishness, but we don't expect it to peak above the mentioned downtrend any time soon. In orders to negate most of this pressure it should now peak above the 1.0528/29. Short term support is at monthly PP.
Traders' Sentiment
Although bullish side of pending orders decreased by 5% it remains in favour (53%) of the bulls. In addition to this bulls continue to hold 71% of all open positions of the pair.
© Dukascopy Bank SA