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- Scotiabank Global Banking (based on the Globe and Mail)
Pair's Outlook
Since the pair bounced back from more than a three-month low at 1.0814 it is supported by the monthly S1 at 1.0859. We anticipate this level to push the pair higher towards the weekly R1 and 20-day SMA at 1.0910/21. Nevertheless, the majority of technical indicators are bearish, thus consolidation at current levels is likely. In our opinion the greenback is undervalued and it should be trading at least above the major level at 1.09.
Traders' Sentiment
An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Loonie. Right now 70% of traders are long the buck, while merely 30% of them believe the currency is going to fall in price even more.
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