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"The behaviour of the market suggests almost everyone still thinks a deal on the fiscal cliff will get done."
- Arab Bank (based on The Australian)
Pair's Outlook
After a promising start earlier in the session pair did not manage to stay above 55-day SMA for a long time and at the moment is hovering between technical levels. For the time being it seems that momentum pair demonstrated on Friday was just a temporary occurrence. This, combined with the readings of technical indicators, suggest that we might be observing somewhat of a bearish correction with 0.990 being the most likely stop point.
Traders' Sentiment
Both, loonie and greenback are the most bought major currencies across the board, but the latter is more preferred out of the two leading to bullish sentiment—63% of traders buy the US dollar versus the Canadian counterpart. It seems that such situation will continue further as 66% of pending orders are to go long on the US dollar as well.
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