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USD/CAD struggles at conquering 55-day SMA

© Dukascopy Bank SA
"The market now prices a 58 percent chance of a December hike. The Fed will become increasingly emboldened in its attempt to finally raise interest rates, if it sees that markets can remain resilient each time it mentions the potential of a December hike." 
- Bank of New Zealand (based on The New Zealand Herald) 


Pair's Outlook 
The American Dollar appreciated against the Canadian one, amid better-than-expected US fundamentals yesterday. Even though the target in face of the 55-day SMA was reached, trade still closed only at 1.3150. The 55-day SMA keeps holding the USD/CAD back, while the weekly PP Is preventing it from inching lower. However, technical indicators retain their bullish signals, suggesting the 1.32 major level could be retaken soon. The Greenback still requires a market mover in order to pierce the immediate resistance; we believe Friday's labor market data could provide the needed boost.

Traders' Sentiment 
Bullish sentiment returned to its Tuesday's level of 52%, whereas the number of buy commands increased from 33 to 40%.
© Dukascopy Bank SA


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