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- Royal Bank of Canada (based on Reuters)
Pair's Outlook
The U.S. Dollar reached the weekly and monthly PPs at 1.1088/83 today, which are located just slightly below the major level; however, the pair has recovered since then. As we stated, already, yesterday, current trading range is risky since there is no reliable support level before the levels touched today. Therefore, if the pair does not climb above the 1.12, which is not very likely, then probably the Greenback will fall towards the 1.11 level once again.
Traders' Sentiment
There is strong conviction in the market that the Greenback is heavily undervalued, being that as many as 72% of open positions are currently long. As for the orders, the amounts of buy (39%) and sell (61%) ones have widened from each other.
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