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"That optimism is just carrying through in the market today ...(the Canadian dollar) has been grinding higher, but it does need a catalyst to continue. The market undertone is still the same as over the last week."
- Knightsbridge Foreign Exchange (based on Reuters)
Pair's Outlook
Pair manage to pickup even before touching weekly S1 at 0.9825. However, its upside potential is rather limited due to pressure of major technical levels (downtrend resistance, 100 day-SMA and etc.) and lack of strong support levels below. It seems that pair might attempt to breach Weekly PP/Monthly S1/Downtrend resistance at 0.9856/63 soon, but lack of strong buy signals lets to believe this level will give bearish impetus for the pair.
Traders' Sentiment
Although both currencies are the most bought major currencies across the board, traders have significantly better attitude towards the greenback as long traders hold 70% of all positions on the pair. In addition, slim, but majority of pending orders (53%) are to go long as well.
© Dukascopy Bank SA