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"Canadian retailers are rising to the challenge of the lure of cross-border shopping, as they look to deal with the Canadian dollar still not far from parity, a significant – although narrowing – gap between Canadian and U.S. retail prices and the more generous duty-free limits."
- BMO (based on The Globe and Mail)
Pair's Outlook
Pair maintained it's bullish stance and has tested August high already. We expect the bullishness to continue, but it seems rather improbable that August high will give up easily. In case of an unexpected failure the pair should find initial support with the downside resistance (connects July and August highs) and 20-day SMA. Dip below the two could provoke a sell off till 1.0410/400.
Traders' Sentiment
Loonie remains one the more sold than acquired major currencies across the board and since greenback is bought in 58% of all cases across the board it spills over to the market sentiment which at the moment remains strongly (72%) bullish. Majority (61%) of pending orders is in favour of the bulls as well.
© Dukascopy Bank SA