cad ssi

Canadian Dollar Forecast to Rally Against US Dollar

Thursday, 06 November 2008 14:55:22 GMT  |  David Rodriguez, Quantitative Analyst

USD/CAD Ratio: 2.76
Trading Forecast: Bearish

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

Resources

• free demo account
• forex courses
• open an account
• forex stream
• free webinars