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"Ahead of the [job] numbers, you had a bit of positioning on the Canadian dollar. It's gaining, but it's still a marginal move."
- Velocity Trade (based on The Wall Street Journal)
Pair's Outlook
As most of other major pairs, greenback and loonie cross started the week passively as pair is staying in 30 pip range. Technical indicators suggest that pair depreciate in the short term. However, market sentiment dynamics should be taken in to the account. There is overwhelming amount of bulls who do not see the pair dipping below the parity. As a consequence we are likely to see the pair remaining slightly below 1.01 for some time.
Traders' Sentiment
Market participants are becoming more bearish towards the pair. Share of bulls in the market decreased by 4% during the weekend and at the moment they account for 70% of market participants. However, clear majority of pending orders (63%) are to go long suggesting that bulls will continue dominate in the market.
© Dukascopy Bank SA