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USD/CAD on the edge of falling back under 1.42

© Dukascopy Bank SA
"Generally, stability in global markets should bode well for the greenback as it creates a backdrop against which the Fed can more likely follow through on expectations for four more lending rate hikes this year."
- Commonwealth Foreign Exchange (based on Business Recorder)

Pair's Outlook 
The USD/CAD managed to extend its gains for an additional day on Tuesday, with volatility even stretching out beyond the immediate resistance. The Bollinger band and the weekly R1 keep providing resistance around 1.4290, which is likely to contribute to the Greenback's turnaround today. Meanwhile, the monthly R1 retains its role of the closest support at 1.4124, whereas the weekly pivot point is reinforcing that area to prevent sharper declines. The bearish momentum is likely to prevail, causing the US Dollar to undergo the long-awaited correction. 

Traders' Sentiment 
Today 67% of traders hold short positions, compared to 66% on Tuesday. The percentage of buy orders dropped from 69 to 53%.
© Dukascopy Bank SA


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