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– Societe Generale (based on Bloomberg)
Pair's Outlook
The US Dollar continued to depreciate against the Canadian Dollar by mid-Thursday, as the Loonie was in its fourth consecutive session of gains against the Greenback. By midday the currency exchange rate had move below various support levels, as the weekly S1 at 1.3080 and two SMAs, namely the 20 and 55 day SMAs respectively at 1.3064 and 1.3039. The fall is in consistence with the channel up pattern, in which the pair has been for some time, and the future outlook shows that the rate will continue to fall below one support level at a time.
Traders' Sentiment
Traders remain largely bearish on the pair, as 66% of open positions were short mid-Thursday. In the meantime, pending commands have shifted from yesterday's bearishness to a bull stance, as 69% of set up orders are to buy.
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