USD/CAD to negate last week's losses

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We believe the remainder of this week's economic reports, particularly Thursday's personal income and spending print, should continue to improve the odds of a September liftoff in rates."
- TD Securities (based on WBP Online)

Pair's Outlook 
Despite strong volatility to the downside, the US Dollar still managed to end the day with a rally. Gains, however, were somewhat limited by the monthly pivot point, as the pair settled at 1.2314. The Greenback is expected to outperform its Canadian counterpart again today, with the closest resistance located around 1.2350, represented by the 20-day SMA. If the US fundamentals exceed expectations, we might even see a surge towards a cluster around 1.2380. Technical indicators, however, are giving mixed signals, unable to confirm the outcome. 

Traders' Sentiment 
Bulls retreated to its Friday's level of 51%, whereas the portion of purchase orders increased from 49 to 62%.
© Dukascopy Bank SA

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