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"We're rangebound for the U.S. dollar-Canadian dollar for now and the next move is really going to have to come from a major data point."
- TD Securities (based on Reuters)
Pair's Outlook
On the whole the US Dollar keeps recovering relative to its Canadian counterpart after hitting the 27-month up-trend in July. But right now the currency is undergoing a bearish correction, which may extend down to 1.1240, namely the lower boundary of the channel NZD/USD has formed over the last five months and monthly pivot point. There the pair will be in a good position to start a rally that may surpass the 2014 high at 1.1467.
Traders' Sentiment
Apparently, cheaper Greenback encouraged more people to bet on outperformance of the US currency—the portion of longs went up from 73 to 75%. Moreover, there are now more people willing to purchase the Buck near the spot—59% (55% on Friday).
© Dukascopy Bank SA