USD/CAD extends the fall

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The US March retail sales report did not generate the type of bounce that USD bulls were hoping for and dollar longs experienced a squeeze on Tuesday amid lower US yields." 
- BNP Paribas (based on WBP Online)


Pair's Outlook 
On Tuesday, the Greenback slumped a lot more than expected. During the trading session the Buck reached out even to the support cluster around 1.2450, but then recovered to 1.2482. As for Wednesday, the US Dollar is likely to weaken against its Canadian counterpart more amid poor fundamental data. Bearish technical studies are bolstering the negative bias. The closest support now lies around 1.2450, which is represented by four important studies. 

Traders' Sentiment 
Although not as strong as yesterday, but market sentiment among SWFX traders remains bullish (71% are longs). Meanwhile, the portion of buy commands in the 100-pip range from the spot declined, now accounting for 36% of the market.
© Dukascopy Bank SA

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