© Dukascopy Bank SA
"It's a notable weakness in the inflation report and strong U.S. GDP -- you should expect to see mid-cycle lows for the CAD on this type of result. We've always expected the U.S. dollar to go higher, but now those moves will be advanced."
- Toronto-Dominion Bank (based on Bloomberg)
Pair's Outlook
Pair has taken a step back after peaking above the 1.072 few days ago and today. It seems unlikely we will see another rally, but rather that the pair will be trading sideways for some time. One more peak above 1.07, however, could ignite a full pledged rally which, if the pair would advance above 1.076, would aim at 2010 high at 1.0855. In case of a failure, the pair might dip to recent low at 1.569, but that seems unlikely at the moment.
Traders' Sentiment
Share of the market controlled by the bulls increased by 2%, till 72%. However, bears strengthened their pressure as bearish side of pending orders increased by 14% since yesterday and at the moment is at is at 59% gauge.
© Dukascopy Bank SA