Canadian Dollar Forecast to Fall Further versus US Dollar

Forex Positioning in the US Dollar/Canadian Dollar

USDCAD – Currency trading crowds remain heavily net long the US Dollar against the Canadian dollar. We will typically take a strictly contrarian view when the majority of traders are net long a given currency pair. Yet we have seen a consistently  bullish bias on the USD/CAD through the past several years of trading, and such a dynamic complicates our readings of forex sentiment in the US Dollar/Canadian Dollar pair. That being said, we do notice that long positions have fallen fairly sharply through recent trade, suggesting that sentiment is becoming increasingly bearish the USD/CAD. Indeed, short positions have gained by 35.4 percent overnight—giving us a contrarian forecast that the USD/CAD may continue to rally through the near term. Tell us and other traders what you think in our forex forum.