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USD/CAD struggles to prolong bearish trend

© Dukascopy Bank SA
"Negative oil price momentum is negative for Canada generally, given that it's a major oil exporter, and also it seems to have become the case that BOC (Bank of Canada) rate expectations are also linked directly to the oil price. So the move in the currency is being compounded." 
- RBC Capital Markets (based on CNBC)

Pair's Outlook
The US Dollar pushed the Loonie to a fresh 13-year low on Wednesday, breaching the immediate resistance cluster around 1.43. The Greenback refuses to retreat from multi-year highs, having tested the 1.44 level earlier today. However, supply around that are is strong, with the Bollinger band, the weekly and monthly R2 providing resistance. Technical studies remain mixed, but there is still room for a rally and a close around the 1.44 mark. Meanwhile, the weekly R1 at 1.4293 acts as the closest support, as the US Dollar is overbought, with risks of a sell-off occurring present. 

Traders' Sentiment 
Market sentiment keeps worsening, as 72% of all open positions are short (previously 67%). The share of buy orders slid from 53 to 52%.
© Dukascopy Bank SA


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