© Dukascopy Bank SA
"The Chinese export numbers are the main driver this morning - you can see that the Aussie and Canadian dollars are both under pressure."
- Societe Generale (Based on Reuters)
Pair's Outlook
Last week the pair was little changed; however, on Thursday it reached weekly S1 at 1.0990 before closing at 1.1086. It has started the week with a slight appreciation and we expect that it will gain bullish momentum and approach the weekly R1 at 1.1152. Most likely it will find very strong resistance at 1.1224, which is more than a three year high, if the pair breaches it then it will attack weekly R3.
Traders' Sentiment
At the moment of writing 70% of the SWFX market participants are expecting the greenback to gain value against its Canadian counterpart. In the meantime, the share of orders to enter the market with a buy trade increased to 44% from 33% last week.
© Dukascopy Bank SA