© Dukascopy Bank SA
"The near-term gyrations in the inflation measures will not significantly affect the bank's policy stance as it is the medium-term outlook that drives their policy."
- Royal Bank of Canada (based on The Globe and Mail)
Pair's Outlook
Despite the momentum the pair demonstrated last week it failed to advance further today and is approaching 20-day SMA. It should support the pair in the medium to long term and, taking in mind distribution of pending orders, is likely to ignite a rally. In such case we should expect 2014 high to be tested in the nearest future. Dip below the 20-day SMA could provoke a sell off till February low at 1.0911.
Traders' Sentiment
Bullish side of pending order expanded by amazing 25-50%, depending on the range, and is at 60-70% levels today. Market sentiment remains slightly above 50% gauge bullish.
© Dukascopy Bank SA