© Dukascopy Bank SA
"When you get these pure (U.S. dollar) moves, CAD tends to get pulled along"
-RBC Capital Markets (based on Reuters)
Pair's Outlook
Pair continues to appreciate and at the moment is trying to breach monthly pivot (S1) at 0.9769. Pairs recovery is not as rapid as one would expect, together with readings of technical indicators this indicates that downside risk on the pair is still significant and it might experience difficulties trying to breach any of resistance levels at 0.9769, 0.9792 or 0.9868.
Traders' Sentiment
Gap between bulls and bears did not change since yesterday and bears continue to dominate in the market as 70% of traders hold short positions on the pair. However, this is not much of a surprise as USD is the most bought currency over the board (66% of all cases). Amount of pending buy orders (65%) suggest a further domination of bulls and strong support for the pair.
© Dukascopy Bank SA