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– FXPrimus (based on Reuters)
Pair's Outlook
The US Dollar ended the year with a third consecutive decline, having lost 65 pips against the Canadian counterpart. The Greenback now faces a strong demand area around 1.3370, represented by the monthly PP, the weekly S1, the 20 and the 55-day SMAs. As a result, the 1.34 mark is unlikely to be breached today even if bears take over the market. Technical studies, on the other hand, imply the Buck is to post a mild recovery. However, due to lack of potential market movers, the closest resistance, represented by the weekly PP, is expected to prevent an upside movements.
Traders' Sentiment
Today 66% of traders hold long positions, compared to 63% of Friday. Meanwhile, 59% of all pending orders are to sell the American Dollar, up from 50% on Friday.
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