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- CIBC Capital Markets (based on Business Recorder)
Pair's Outlook
Yesterday the Greenback was unable to largely outperform the Loonie, as the pair was unable to maintain trade above the 1.30 mark, as the supply area at 1.3013 pushed it lower. The USD/CAD currency pair is reluctant to abandon its attempts to climb higher, but the nearest resistance around 1.3050, represented by the 55-day SMA, the weekly and the monthly R1s, is also unlikely to give in today. Ultimately, however, the US Dollar risks ending the week significantly lower. This scenario is quite possible, as the nearest resistance could trigger a sharp sell-off, as technical indicators in the weekly timeframe suggest. Meanwhile, the nearest support rests only around the 1.28 mark.
Traders' Sentiment
Now 53% of traders are long the Buck, unchanged since Monday, while the number of orders to buy the US Dollar increased from 34 to 51%.
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