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"If the ECB, for whatever reason, fails to back up what Mr. Draghi said today and his board members said yesterday, you could see a general decrease in risk appetite, which could weigh on the Canadian dollar "- Ravi Bharadwaj, Western Union Business Solutions (based on Bloomberg)Pair's OutlookFollowing the downward channel trend, USD/CAD is continuing its slide, and is likely to hit pattern's support line in the beginning of next week. Before that, the pair still has to pierce weekly S1 at 1.0662. After a trend reversal, the first bearish targets might be near 20-day MA at 1.0152.
Traders' SentimentTraders are starting to expect a trend reversal, as today only 60% of traders (down from 65% yesterday) expect pair's further fall. 39% of traders plan to open long positions in the upcoming days. Traders are also expecting the Advance GDP data from the USA, which might have an impact on pair's further movements.
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