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"Historically, world equities have had the highest negative correlation with USD/CAD since the onset of the credit crisis."
- RBC Capital Markets (based on The Wall Street Journal)
Pair's Outlook
Pairs rally might be coming to an end as it seems to have lost momentum after reaching 1.053. Strong support is given by the Stochastic indicator in short and medium terms and pairs volatility (trading range is 90 pips) today. In addition, pair is facing major resistance area around 1.06. During dips pair should find support at 1.044 and 1.037.
Traders' Sentiment
Although pair seems to be taking a step back, bulls continue to control 72%, the same as yesterday, of all open positions on the pair. Majority of pending orders (56%) is in favour for the bulls suggesting that pair might not reached new relative high just yet.
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