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USD/CAD gravitates towards 1.31

© Dukascopy Bank SA
"As long as China doesn't continue to aggressively devalue the yuan, we will see it (a rate hike) in the next six months, and the U.S. dollar will be stronger." - Saxo Capital Markets (based on CNBC) 

Pair's Outlook 
The USD/CAD experienced minor volatility and remained relatively unchanged on Monday, as the US fundamental data disappointed. However, the pair remains supported by the weekly PP and 20-day SMA at 1.3077, which should cause the Greenback to edge higher today. The situation has not changed since yesterday, with exception of being one day closer to the Fed's Meeting Minutes. The US Dollar keeps struggling to take over the 1.31 major level, being trapped between it and the substantial support. Even though technical studies retain bullish signals, the Buck is likely to trade flat. 

Traders' Sentiment 
Exactly three quarters of all positions are short today, whereas the percentage of purchase orders inched higher from 73 to 74%.
© Dukascopy Bank SA


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