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    USD/CAD rebounds from channel's support

    © Dukascopy Bank SA
    "If all central banks are taking care of weakening their currencies, it is difficult to establish a new trend. You see a general situation where the dollar is rising again and every move higher weakens the case for whatever minimal chance of a rate rise the market is pricing in. Right at the moment we are a little bit stuck."
    - Commerzbank (based on CNBC) 

    Pair's Outlook 
    Although the US Dollar pierced its descending channel's support line on Friday, trade still opened within the pattern's borders today. The mentioned support line is now weaker, but is reinforced by the monthly S1, the 200-day SMA and the Bollinger band, which should keep the USD/CAD above 1.33 level. Furthermore, the pair was unable to edge below the monthly S1 on Friday, where demand is strong; thus, we should see the exchange rate edge higher. The closest level to limit the gains is located right on top of the 1.34 psychological mark, namely the weekly PP. Volatility, on the other hand, could even stretch higher. 

    Traders' Sentiment 
    Traders' sentiment remains bullish at 56%, compared to 57% on Friday. At the same time, the portion of orders to acquire the US Dollar lost 14 percentage points, having fallen to 41%.
    © Dukascopy Bank SA

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