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"The event risk [Fed rate decision] is just too significant to not pay attention to."
- BMO Capital Markets (based on Reuters)
Pair's Outlook
USD/CAD refuses to leave the vicinity of the recently formed up-trend, which adds to the pressure on 1.3245/36 and thus increases the probability of a bearish break-out. Still, the risks are skewed to the upside, and the bullish scenario is affirmed by the indicators. If the trend-line fails as a support level, there will still be a good chance for a recovery because of a nearby cluster circa 1.3150, where the monthly PP meets the 55-day SMA and weekly S1.
Traders' Sentiment
A majority (71%) of traders prefers to stay short the US Dollar against its Canadian counterpart. At the same time the difference between the buy and sell orders became insignificant—only six percentage points after 30 recorded yesterday.
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