"Given the commodity dollar-bloc strength, it's fair to think that the momentum could continue, which would likely translate further into both technical and fundamental favor likely leading to further CAD strength." - Tyler Yell, Daily FX
During the first half of Tuesday's trading session the US Dollar had lost 160 pips against the Canadian Dollar. The currency exchange rate fell throughout the day, ignoring all levels of significance.
The main reason was the general weakness of the Greenback, as it lost value throughout the day, which was expected for a long time.
Although the drop has been massive, it is set to continue, as the closest support level is at 1.3001, where the weekly S1 is located at. In addition the weekly S1 is strengthened by the 23.60% Fibonacci retracement level at 1.2988.
SWFX traders remain bullish regarding the pair on Tuesday, as 53% of open positions are long. In the meantime, 58% of trader set up orders are set to sell the Greenback.
Provided by Dukascopy Bank