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USD/CAD refuses to surrender its bullish tone

© Dukascopy Bank SA
"The data today or the events in China should not do that much in terms of having an impact for funds today. If anything, funds has been compressing towards our fair value estimate which has been rather sticky at ~1.30."
- TD Securities (based on FXStreet) 


Pair's Outlook 
The American Dollar sustained losses after FOMC member Fischer's statement brought doubts about the Fed raising interest rates in September. As a result, the USD/CAD declined 135 pips and stabilised just above the 1.30 major level. A rebound is likely to take place today, with a rather strong resistance area around 1.3060, also bolstered by the six-year high. Nevertheless, the resistance might lack the strength to limit today's surge and allow the Buck to retake the 1.31 psychological level. Technical studies retain bullish signals, suggesting the Greenback is to outperform the Loonie as well. 

Traders' Sentiment 
Bulls gained some numbers, reaching last Tuesday's level of 35%, whereas the share of purchase orders slid from 60 to 40%.
© Dukascopy Bank SA


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