© Dukascopy Bank SA
"The real story is outside of the Canadian borders right now. There are still some real issues in Europe -- the market continues to want Spain to formally request a bailout. As a result, there's a marginal unwind of the Canadian dollar strength amid a general unwind of the peripheral currencies."
-Bank of Montreal (based on Bloomberg)
Pair's Outlook
Pairs shy rally today strengthens the doubts about further appreciation of the pair as technical indicators point down. However, the Stochastic indicator suggests that bullish correction is not over yet and this temporary setback is due to monthly pivot at 0.9769 which, unexpectedly, gives strong resistance for pairs advance.
Traders' Sentiment
Gap between bulls and bears increased by 2% since yesterday and bulls continue to dominate in the market as 72% of traders hold long positions on the pair. Amount of pending buy orders (63%) suggest a further domination of bulls and strong support for the pair in the lower levels.
© Dukascopy Bank SA