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- CIBC Capital Markets (based on Business Recorder)
Pair's Outlook
The Greenback took another step down yesterday, prolonging its recently acquired bearish trend against the Loonie. The USD/CAD still faces a tough support cluster around 1.2755, represented by the 20-day SMA, the weekly and the monthly PPs, which is expected to limit the losses. Technical studies, however, are unable to confirm this outcome, as they are now giving bullish signals in the daily timeframe. The immediate support cluster could cause the expected rebound, but no impetus is present today to push the USD/CAD back above the 1.29 major level. The base case scenario is still a drop at least towards 1.28.
Traders' Sentiment
Market sentiment is now equally divided between the bulls and the bears. The percentage of orders to acquire the US Dollar keeps increasing, now taking up 84% of the market (previously 70%).
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