"Monday's best-performing currency was the Canadian dollar, which traded sharply higher on the back of higher oil prices and stronger Canadian data."
— Kathy Lien, BK Asset Management (based on investing.com)
Pair's Outlook
As it was expected, the Canadian Dollar extended its gains against the US Dollar in the second half of Monday's trading session. However, on Tuesday the pair has been trading in a tight range above a support cluster. The support cluster consists of the weekly S1 at 1.3321 and the 38.20% Fibonacci retracement level at 1.3313. The short term direction of the pair is unclear, as either a consolidation against the support might occur, or the Greenback might extend its losses, if the fundamental political events of the day compromise the future of the US economy.
Traders' Sentiment
Traders remain bearish on the pair, as 56% of open positions are short on Tuesday. Meanwhile, 59% of trader set up orders are to sell the Buck.
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