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    USD/CAD on the verge of reaching a new 12-year high

    © Dukascopy Bank SA
    "The level of USD longs continued to creep lower into the end of the year indicating some skepticism about the pace of Fed rate hikes in 2016."
    - Rabobank (based on WBP Online) 


    Pair's Outlook
    As was anticipated, the weekly R2 prevented the USD/CAD from retaking the 2004 high yesterday. Nevertheless, Canadian fundamentals keep disappointing and commodity prices keep falling, thus, weakening the Loonie. Consequently, the Greenback might finally retake the 12-year high today, with the 1.41 major level being the ceiling, as the Bollinger band suggests. However, a set of deteriorated US data is likely to have an opposite effect and drive the given pair back under the 1.40 mark, ultimately resulting in a slump towards 1.3909, where the weekly R1 is located. 

    Traders' Sentiment 
    Nearly three quarters (73%) of traders hold short positions today, whereas the number of purchase orders slid from 45 to 24%.
    © Dukascopy Bank SA

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