"Investors kept their powder dry before the start of the Federal Open Market Committee meeting."
— Alexandria Arnold and Dennis Pettit, Bloomberg
Pair's Outlook
The US Dollar continue its surge against the Canadian Dollar, as the currency exchange rate marked the eight consecutive trading session of gains. The currency pair follows closely the upper trend line of a long term ascending channel pattern. It is highly possible that the trend line will not be passed, but a consolidation of gains, followed by a decline, could occur soon. In such case the rate would retreat down to the weekly PP, which is located at the 1.3589 level. The weekly pivot point is also supported by the 50.00% Fibonacci retracement level at the 1.3576 level.
Traders' Sentiment
SWFX traders remain bearish, as 70% of open positions are short on Tuesday. Meanwhile, 64% of trader set up orders are to sell.
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