USD/CAD keeps edging closer to May high

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"While markets viewed the June FOMC statement as dovish, there is a risk that the minutes hint at a more balanced discussion (which may be perceived as slightly more "hawkish") on rate hikes later this year." 
- TD Securities (based on FXStreet)

Pair's Outlook 
On Tuesday, the USD/CAD reached a daily high of 1.2780, but settled still slightly lower at 1.2720, between the second and third resistances. Despite dovish meeting minutes expectations, the US Dollar is still likely to outperform its Canadian counterpart, amid weak Canadian fundamental data. Immediate resistance is located at 1.2729, represented by the weekly R1, but the Bollinger band around 1.2760 provides more solid obstacles. Furthermore, we might even see a hike towards the 1.28 psychological level by the end of the day, in spite of mixed technical indicators. 

Traders' Sentiment 
Even less traders have a positive outlook towards the Buck, namely 31%, while the number of purchase orders shrank from 56 to 32%.
© Dukascopy Bank SA

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