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    USD/CAD poised for more weakness

    © Dukascopy Bank SA
    "With support at 1.2911 exceeded with ease in this regard, the focus in USD/CAD now shifts down to the May 12 low at 1.2772." 
    - RBC Capital Markets (based on FXStreet) 

    Pair's Outlook 
    The USD/CAD was the worst-performing USD pair yesterday, as it plunged more than 130 pips, breaching two closest supports. The main driver of this decline was an increase in oil prices, which caused the Greenback to reach the 1.28 major level on Monday. The Buck is now under the risk of falling even deeper down, even though the weekly S2 and the Bollinger band form a rather strong support area around 0.2772, which could potentially limit the losses. Technical indicators retain their mixed signals today, but May's bullish trend appears to have come to an end after Friday's US NFP data disappointed.

    Traders' Sentiment 
    Today 63% of all open positions are long, compared to 59% of Monday. At the same time, the number of orders to buy the US Dollar increased dramatically, namely from 47 to 70%.
    © Dukascopy Bank SA

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