USD/CAD Ratio: 2.13 Signal: Bearish
USDCAD – While most of the majors have fallen into ranges, none of the pairs have been contained by congestive price action quiet as long as the USDCAD. Working on its eighth month of restrained rallies and rebuffed selloffs, retail positioning behind the pair is still relatively muted as the speculative community struggles to call turning points in an otherwise choppy range. Recently, there has been a notable trend behind a growing, positive bias in sentiment since the flip after June 10th's reversal. This week, the sentiment ratio rose to a 2.13 reading from 1.79 with nearly 68% of the pool holding long positions. We have seen retail traders consistently fight the trend; and quickly cut positions when price action finally reverses in their direction; and it looks like traders are doing the same thing this time around. In detail, long positions are a modest 0.3% higher since yesterday and a sharp 21.1% higher on the week. On the other side of the trade, shorts rose 0.5% and contracted 23% from last week’s levels. On the whole, net interest grew a meager 4.1% and was 2.1% below the monthly average.