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"We did move a little too far. It's the classic case that the U.S. is moving, or continues to move, somewhat ahead of the Canadian cycle. So the U.S. looking to move back to a stronger growth phase in the latter half of the year."
- Canadian Imperial Bank of Commerce (based on Bloomberg)
Pair's Outlook
Pair has appreciated by more than 70 pips after it received a bullish impetus from the weekly pivot (PP) earlier today. However, technical indicators give clear indications that pair should plunge suggesting that this peak might have been premature attack launched by the greenback bulls. All in all, pair is rather likely to plunge from the 20-day SMA right to the 200-day SMA.
Traders' Sentiment
Bulls are continuing to dominate in the market. Their holdings increased by additional 1% and at the moment they hold 73% of all outstanding positions. Distribution of pending orders does not suggest any major changes as bulls and bears posted almost equal amounts.
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