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    USD/CAD on the edge of breaking the channel

    © Dukascopy Bank SA
    "They should signal a rate hike in June and that should see the dollar edge up." 
    - Nordea (based on Business Recorder) 


    Pair's Outlook 
    Even though the US Dollar strengthened against its Canadian counterpart on Tuesday, the risk of a bearish outcome is higher today. As a result, the 21-month up-trend could be broken, leading to an eventual sell-off towards the 2015 Q4 low at 1.2831. There is also sufficient room for the bullish momentum to take place, namely towards 1.3516 level, where the descending channel's upper border is located. According to technical studies, a downside reaction is to prevail today. Nonetheless, a breach of either trend-line is highly likely if the Fed disappoints. 

    Traders' Sentiment 
    There are 54% of traders holding long positions today (previously 55%). At the same time, the number of orders to purchase the Greenback lost 18% points, having fallen down to a total of 53%.
    © Dukascopy Bank SA

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