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- TD Economics (based on WBP Online)
Pair's Outlook
The USD/CAD currency pair broke out of the descending channel to the upside yesterday, but with the immediate resistance cluster limiting those gains. Technical studies keep suggesting the US Dollar is to weaken against its Canadian counterpart, but with the weekly PP and the 20-day SMA now providing immediate support this scenario seems doubtful. The Greenback has the potential to climb over the weekly R1 at 1.3244 and retake the 1.33 psychological level, with the next strong resistance located around 1.34. However, in case the bears manage to pull the Buck lower, the closest second support will be the weekly PP at 1.3050.
Traders' Sentiment
Bulls and bears broke out of the equilibrium, as 53% of traders no hold short positions. The portion of sell orders declined from 87 to 78%.
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