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"As the euro has rallied, you've seen some weakness not only in the U.S. dollar but in the Canadian dollar against the crosses, so that, if anything, has kept the Canadian dollar pretty static against the U.S. here."
- BMO Capital Markets (based on Reuters)
Pair's Outlook
For the third consecutive day pair is fluctuating in small, up to 25 pip, range. Although technical indicators give neutral signals it is worth mentioning that %K and %D in the Stochastic indicator have intersected and we might be observing a beginning of a bullish rally. However, it is likely that even in case of a rally the pair might appreciate only up to 30-40 pips per day.
Traders' Sentiment
Loonie is bought only in 52% of cases, in comparison to 60% yesterday, across the board. This had rather a significant impacts on market sentiment on the pair as it became more bullish and 71% of traders hold long positions on the pair. Significant majority (60%) of pending orders are to go long as well.
© Dukascopy Bank SA