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- Cambridge Mercantile Group (based on Reuters)
Pair's Outlook
It seems that the pair's further appreciation is largely dependant on the 100-day SMA and weekly PP at 1.1025/29. In case the 100-day SMA gets broken then we might see a selloff starting; however, if the pair continues its moderate advance then it might look towards breaching the 55-day SMA and weekly R1 at 1.1058. The technical indicators are largely giving the ‘buy' signal and we also expect the greenback to appreciate.
Traders' Sentiment
An majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Loonie. Right now 56% of traders are long the buck, while merely 44% of them believe the currency is going to fall in price.
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