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"The market has decided to stop catastrophizing Greece ... and the market is taking that as a catalyst perhaps to start pulling back on its extreme long (U.S.) dollar positioning."
- Jack Spitz, managing director of foreign exchange at National Bank Financial (based on Reuters)
Pair's Outlook
USD/CAD opened lower today after the Greek poll revealed that the pro-bailout parties are likely to overtake majority in the Greek parliament. Thus, a risk of the downside movement persists, therefore if the bearish correction deepens, AUD/USD could retrace to 1.0200 (initial support line) and it could down to the weekly support line at 1.0170 As the pair is trading above 200-da ma, the bullish trend to stay strong over the short term.
Traders' Sentiment
Traders' sentiment is neutral on USD/CAD, since the amount of long and short positions is nearly the same, both being 50% of the market, even though the American Dollar is the most popular currency at the moment.
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