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"What's driving the market right now is still a U.S. dollar story; it's still overall risk sentiment. If it continues to be slightly negative or cautious, we'll continue to see the U.S. dollar do well."
- KnightsbridgeFX.com (based on Reuters)
Pair's Outlook
USD/CAD is currently undergoing a bearish correction after a test of 1.14. The nearest level to try underpin the pair is at 1.20, where the two-month up-trend merges with the weekly S1 and 20-day SMA. But if the buying is weak, the bears are likely to push the price some 150 pips further down, until the rate reaches a dense demand area between 1.11 and 1.1050, mainly created by the monthly PP, 55-day SMA and a four-month up-trend.
Traders' Sentiment
Three out of four SWFX market participants believe the US Dollar is going to outperform its Canadian counterpart—75% of open positions are long. Meanwhile, the portion of commands to sell the Buck 100 pips from the spot grew from 55 to 61%.
© Dukascopy Bank SA