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[Fed's] "assessment of recent mixed data will clearly be watched closely as a guide to whether the start of tapering will be delayed beyond the September meeting."
- AMP Capital (based on MarketWatch)
Pair's Outlook
Yesterday USD/CAD touched upon the monthly S1 level at 1.0253 and in the end closed beneath the weekly S2, as the bearish pressure on the nearest supports persists. Still, the key falling trend-line is standing its ground and is anticipated to continue preventing development of the bearish momentum. Even if this support gives in eventually, there is the 200-day SMA and the up-trend line at 1.0160 that should keep the pair afloat for an extended period of time.
Traders' Sentiment
The distribution between the bullish and bearish market participants remains more or less the same in USD/CAD—74% of positions are long and 26% are short. In the meantime, the level of U.S. Dollar's popularity is on the rise, as in all of its currency pairs the buck is bought in 61% of trades.
© Dukascopy Bank SA