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Canadian Dollar SSI Still Holding Off On Flip

Thursday, 03 April 2008 18:47:22 GMT

Written by John Kicklighter, Currency Analyst

USD/CAD Ratio: 1.64
Signal: Bearish

Currency Last Week Present* % Long % Change in Positions Outstanding Signal
USDCAD 1.45 1.64 62% 5.31% Bearish

SSI8_4-3

USDCAD – The USDCAD SSI continues to hold just above parity, keeping a flip to net negative speculative retail sentiment and projection for gains just out of reach. The pair’s ratio stands at 1.64 with 62% of traders long. Compared to last week’s 1.45 reading, sentiment is more firmly set with its positive bias; but the long-term trend in net positioning has clearly eased from six months ago, and even a month ago. From the details we can see that long positions are only 1.6% greater than yesterday, but 9.4% stronger than last week. Shorts are only 0.3% weaker than yesterday and 0.8% below last week’s level. Open interest has seen similarly modest changes, with net positions only 0.9% greater than yesterday and 5.2% below its monthly average. As a contrarian indicator, the SSI signals more USDCAD losses, but a big flip may occur in the near future.

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