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- RBC Capital Markets (based on Reuters)
Pair's Outlook
USD/CAD stays directionless, as a current strong supply of the U.S. currency keeps the spot price close to the confluence of all four traced simple moving averages. Given the current disposition, we believe the probability of a recovery being continued is higher than the alternative scenario of a series of consecutive breaches of 55, 100 and 200-day SMAs, since the up-trend support line at 0.9882/51 is consistently respected by the market.
Traders' Sentiment
In general SWFX marketplace participants reckon that USD/CAD has bottomed out and is set to commence a recovery. This is derived from the fact that 65% of positions are long and 35% are short. At the same time the ratio between buy (67%) and sell (33%) orders is similar.
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