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– Philip Petursson, Manulife Investments (based on Reuters)
Pair's Outlook
The USD/CAD pair successfully breached a trend-line on Thursday, which prevented by Buck from climbing significantly higher. Consequently, the US Dollar opened the door for another possible bullish development, which is likely to take place today. Gains, however, are to be limited around 1.3560, where the monthly R1, the Bollinger band, the weekly R3, the 50% Fibo and the ascending channel's resistance line coincide. Meanwhile, technical studies keep giving bullish signals, bolstering the possibility of the positive outcome. This implies that the US Dollar can add only another 90 pips against the Loonie, as a U-turn will be expected once the trend-line is reached.
Traders' Sentiment
Bears gained some numbers, as 55% of traders are now short the Buck (previously 52%). The buy and sell order ratio is now equal to one.
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