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USD/CAD: Weak trend momentum signals

FXStreet (Guatemala) - USD/CAD is currently trading at 1.2535 with a high of 1.2567 and a low of 1.2474.

USD/CAD is on the bid despite some disappointing numbers are the Us manufacturing sector that came in the form of data from todays US ISM Manufacturing. However, the key event for the CAD this week will come on Wednesday, as the BoC rate decision is announced. Analysts at TD Securities explained that the BoC meeting is also a very close decision and following Governor Poloz’s speech last week we look for the BoC to keep rates on hold but believe that the call is tantamount to a coin toss.

Technically, there have been conflicting signals in quick succession suggest that the market itself is unsure of the direction in funds here and that absence of direction is reflected in the weak (and weakening) trend momentum signals evident on the short-term charts, as explained by the analysts at TD Securities. "The set-up here remains potentially positive (bull flag or wedge on the daily chart) but that does not preclude a push back to the 1.22 area from here and we can only get really constructive again on the outlook above 1.2636.

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