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– MUFG (based on FXStreet)
Pair's Outlook
The 200-day SMA succeeded in reversing USD/CAD's bullish performance yesterday, causing the pair to stabilise just under 1.32. As a result, the channel pattern has been preserved, where trade is likely to continue. A logical development would be a decline today, with the nearest support located around 1.3120, formed by the weekly PP and the 20-day SMA. Technical indicators, on the other hand, are giving bullish signals in the daily timeframe, suggesting another rally is due. The 1.33 major level is considered to be the ceiling, as it is reinforced by a number of other resistances, forming a tough barrier to penetrate.
Traders' Sentiment
There are now 68% of all open positions being short (previously 71%), whereas 66% of all pending orders to sell the Greenback (up from 62% on Tuesday).
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