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There has been "a pretty material decline in oil the last couple days. We keep holding up $40 as a bit of a bottom there, but it certainly has dragged the Canadian dollar down with it."
- CIBC World Markets (based on Reuters)
Pair's Outlook
The accelerated up-trend we mentioned yesterday remains intact, which implies that near-term losses are to be limited by 1.3170, where we also have the 55-day SMA. However, at the same time the pair is facing a solid resistance zone near 1.3270, where the monthly PP coincides with the weekly R1 and Bollinger band. Judging by the technical indicators, the upper level is more likely to give in first, and this will provide a good opportunity for the rate to revisit the September high at 1.3450 in not so distant future.
Traders' Sentiment
There is still no change in the sentiment of the market: 47% of positions are long. But this balance may be disrupted because the share of buy orders jumped from 37 to 67%.
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