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– Greg Anderson, Bank of Montreal (based on Bloomberg)
Pair's Outlook
After playing above the trend line and teasing traders with a possible continuation of the surge the USD/CAD currency exchange rate had retreated back to the long term ascending channel on Tuesday. Although the currency pair moved back below the trend line, it still experienced rather high volatility, as the rate fluctuated amidst the various levels of significance near the trend line. However, it is most likely that the resistance, which has proven itself previously, will keep the rate down.
Traders' Sentiment
Traders have decreased their bearishness by 12%, compared to Monday, as on Tuesday 62% of open positions were short. In the meantime, pending commands were 57% to buy the US Dollar.
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