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- Royal Bank of Canada (based on Reuters)
Pair's Outlook
The greenback has depreciated against the Loonie this week, breaking the monthly PP at 1.0888. It seems the 200-day SMA has stopped this week's decline around 1.0860. It is possible that the 200-day SMA is breached and the pair slides closer to the 1.08 level; although, it is unlikely. We expect the pair's bulls to push the greenback higher, the next key target is the 20-day SMA and monthly PP at 1.0884/88. In case it is broken then the pair could even approach the weekly PP at 1.0913.
Traders' Sentiment
The SWFX traders are getting more convinced that the greenback is going to climb against the Loonie, as pair's bulls take up 69% of the market, and this is a significant advantage over the bears (31%).
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