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- Benjamin Reitzes, BMO Capital Markets (based on Reuters)
Pair's Outlook
The currency pair is approaching the support at 1.0133/14, it consists of the lower Bollinger band and the weekly and monthly S1 levels. Nonetheless, the rate could fall lower, down to 1.0080—the current position of the 200-day SMA and the rising support line, initiation of which dates back to Sep 13 of 2012. Demand there could potentially drive the price back up to 1.0420, May 29 high.
Traders' Sentiment
Currently USD/CAD is moving in the opposite direction to broad expectations of the SWFX marketplace participants. Still, the portion of bulls does not diminish despite the unfavourable trend—72% of positions are long. The distribution between the buy and sell orders was subject to change overnigh, the former now take up 59% of the total amount.
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