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"I think any flow associated with that transaction is CAD positive but I think it is right to not go overboard on the forward-looking implications beyond that because of that very strong qualification that went with it."
- RBC Capital markets (based on Reuters Canada)
Pair's Outlook
As was to be expected pair started the week very calmly. It tried to step up by some 20 pips, but it became evident rather soon that 100-day SMA is going to become a major obstacle for that. Since then pair was fluctuating between the mentioned SMA and Bollinger band. The RSI and the Stochastic indicators send positive signals, but it is worth pointing out that %D and %K have no intersected yet and as a result we might need to wait for the bullish rally.Traders' Sentiment
Although both currencies are bought in ~60% of cases across the boards, but greenback remains more proffered currency in the pair as in the new week market sentiment remains bullish (67% of market participants). Pending orders are in favour for the bulls as well—58% of pending orders are to go long.
© Dukascopy Bank SA