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"We could see more downside from here for commodities; obviously it's not positive for the Canadian dollar."
- Toronto-Dominion Bank (based on Bloomberg)
Pair's Outlook
Pair bounced off the 10th of October peak which was a noticeable peak since the beginning of September. At the moment it is moving towards weekly R1 which should be tested shortly. However, we expect it to be just an interim stop much heavier resistance is expected from the October high at 1.0497. We do not expect the pair to advance above it from the first try. 1.05 should have strong psychological effect on the traders in general. Close below 1.04 could provoke a sell off to 1.0317.
Traders' Sentiment
Market sentiment became noticeably more bullish since yesterday. At the moment bulls account for 74% or market participants. This is 8% more than yesterday. Bullish side of pending orders increased by 3% and is at 57% gauge today.
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