"US imposes duties on Canada, loonie declines."
— Boris Schlossberg (based on investing.com)
Pair's Outlook
Due to fundamental reasons the Greenback was reaching for the 1.36 mark against the Canadian Dollar during the first half of Tuesday's trading session. The reason was the fact that the US imposed trade tariffs on Canada. Due to that reason the currency rate surged and broke the resistance put up by the 50.00% Fibonacci retracement level, which is located at the 1.3576 level. The pair was about to face the weekly R1 at 1.3596. If that resistance level would be passed, the next goal would be the monthly R2 at 1.3643. However, a bounce off from any of the resistance levels is also possible.
Traders' Sentiment
SWFX traders have increased their bearish sentiment, as 68% of open positions are already short. Moreover, 68% of set up orders are to buy the Loonie.
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