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    USD/CAD risks breaking the monthly R1

    © Dukascopy Bank SA
    "Right now the Canadian dollar and oil are joined at the hip, so whenever there's a move in oil it's going to drag down the loonie."
    - Oanda (based on CNBC) 


    Pair's Outlook 
    The US currency's behaviour fell in line with expectations, with the USD/CAD closing trade several pips in front of the second resistance target. The weekly PP and the psychological level of 1.43 provide rather strong resistance, for a breach of which the Greenback lacks impetus today, as rising oil prices are strengthening the Loonie. As a result, the pair is likely to partially erase Monday's gains, while the 20-day SMA acts as the closest support around 1.4204. The key support, however, is located at 1.4124, namely the monthly R1, but according to technical studies, a drop that low is doubtful.  

    Traders' Sentiment 
    Bears pushed forward, now taking up 64% of the market. Pending orders are equally divided between the buy and the sell ones.
    © Dukascopy Bank SA

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