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"The dollar is being supported by higher yields right now, suggesting that the ongoing recovery in the U.S. is still positive overall."
- RBS Securities (based on Reuters)
Pair's Outlook
Not so long ago USD/CAD broke down the 55-day SMA, now the currency pair is trying to erode a senior simple moving average, namely for 100 days. This, together with the down-trend support line, should hold. However, given that yesterday's rally from 1.0295/79 was shallow, the probability of further zone at 1.0253/35 being tested greatly increased.
Traders' Sentiment
Conviction of traders in the SWFX marketplace that USD/CAD is on the verge of ending the protracted downward correction strengthened even further, judging by the increasing up to 74% share of currently open long positions. Bears, in the meantime, are in a clear minority with merely 26% of the total amount.
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