Forex Positioning in the US Dollar - Canadian Dollar Currency Pair
USDCAD – Forex traders have become increasingly short the Canadian dollar against the US Dollar, and very one-sided currency market positioning suggests that the Canadian dollar may in fact recover through near-term trade. Our Speculative Sentiment Index-based forex trading signals have accordingly bought the Canadian dollar through recent trade—forecasting that the USD/CAD exchange rate may decline through upcoming price action. The ratio of long to short positions in the USDCAD stands at 2.77 as nearly 73% of traders are long. Yesterday, the ratio was at 2.29 as 70% of open positions were long. In detail, long positions are 9.5% higher than yesterday and 20.2% weaker since last week. Short positions are 9.5% lower than yesterday and 63.0% weaker since last week. The SSI is a contrarian indicator and signals more USDCAD losses. Tell us and other traders what you think in our forex forum.
Written by David Rodríguez, Quantitative Analyst for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
