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"Much like its U.S. counterpart, the Canadian economy seems unable to break out of its sub-par growth trajectory ."- Douglas Porter, deputy chief economist, BMO Capital Markets (based on Financial Post)Pair's OutlookThe pair is unexpectedly continuing its downward movement, and is currently moving closer towards the weekly S1 at 0.9972. However, RSI (14) is likely to give a Buy signal in near term, so a bullish correction is highly probable. In such case, USD/CAD would be en-route towards the 200-day SMA at 1.0041.
Traders' SentimentWe can currently observe a perfect balance between bulls and bears, as market participants evaluate both scenarios as equally probable. The current market sentiment is strongly supported by the aggregate market indicators' signals (neutral for daily and monthly timeframes).
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