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USD/CAD attempts to negate last week's gains

© Dukascopy Bank SA
"With Fed officials already hedging the potential for a June hike, a failure of US data to accelerate post-winter will only push rate hike expectations out further pressuring still sizeable dollar longs." 
- BAML (based on FXStreet)


Pair's Outlook 
The USD/CAD exceeded expectations, as the pair slumped a bit more than anticipated. The 20-day SMA forced the Greenback to edge down, while the supports at 1.21 lacked the strength to prevent the fall. As a result, the US Dollar stabilized at 1.2091 yesterday. Technical indicators retain bearish signals, suggesting further weakness in the currency pair. Soft US fundamentals expectations are only bolstering the probability of the negative outcome. A strong support cluster around 1.20 should prevent the Buck from suffering anymore losses. 

Traders' Sentiment 
Market sentiment remains unchanged, with 38% of traders being long the Buck, while only 45% of all orders are to buy the US Dollar.
© Dukascopy Bank SA


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