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- SEB (based on Bloomberg)
Pair's Outlook
The Loonie somewhat outperformed the Greenback on Wednesday, but gains were rather limited. Moreover, the USD/CAD's volatility was contained between the weekly and the monthly S1s from the upside and the Bollinger band and the weekly S2 from the downside. The given pair is expected to remain within this trading range for another day, as no impetus is likely to be sufficient to cause the Buck to break out. The bearish development is more likely, as the given pair remained in a bearish trend since the second half of January. Meanwhile, technical indicators retain their mixed signals, implying that the exchange rate could remain relatively flat for another day.
Traders' Sentiment
Bulls still take up 60% of the market, while the portion of orders to acquire the US currency edged higher, namely from 43 to 53%.
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