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- Scotiabank (based on Reuters)
Pair's Outlook
Apparently, USD/CAD has regained its bullish momentum, after the sharp drop on Friday, as the pair gained yesterday and has prolonged its advance with a test of the 1.14 level today. Moreover, the weekly and monthly technical indicators continue to be the way they have been for a while now—bullish. The biggest obstacle for a further appreciation is to break the major level at 1.14 and the monthly R1 at 1.1412; however, they will be challenged.
Traders' Sentiment
An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Loonie. Right now 72% of traders have opened long positions, while merely 28% of them believe the currency is going to decline.
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