© Dukascopy Bank SA
"There was a lot of down pressure on the loonie early in March and we've seen a bit of a lift in the loonie in the last couple of weeks and part of that has been driven by people covering their short positions."
- Macquarie Capital Markets (based on Bloomberg)
Pair's Outlook
Although further depreciation of the pair did not come as a surprise, but a 30 peep dip was a bit unexpected. It might be that pair might have fallen even further if not the Bollinger band at 1.012. It is likely that pair will continue depreciating, but at a much slower pace and is likely to slowly start picking up some time closer to the end of the week.
Traders' Sentiment
Market sentiment remains at hold as bulls continue to possess 66% of the outstanding positions on the pair in the market. It is very likely bulls will continue dominate in the market since 80% of pending orders are to go long on the greenback against the loonie..
© Dukascopy Bank SA