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"We're in the process of seeing a divergence in monetary policy. Canada can be expected to keep a very loose, accommodative monetary policy, in contrast to the Fed, which is set to start its tightening cycle."
- Pioneer Investment Management Inc. (based on Bloomberg)
Pair's Outlook
Pair seems to have breached the range boundaries in which it was for the past 4 days, but it should advance above the 2011 high to confirm it. That would put the 2013 high on the map, although we don't see the pair advancing above it any time soon. In case of a failure at 1.065 the pair is likely to return below the 20-day SMA, but to stay above the August high.
Traders' Sentiment
Bearish side of pending orders recovered the 5% it has lost in the last few days and is back to 55% today. Bulls, however, still hold overwhelming majority, 73% of all open positions. That is 3% more than yesterday.
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