cad ssi

USDCAD-Canadian Dollar Outlook Unclear, but Indicator Forecasts USD/CAD Losses

Thursday, 16 October 2008 14:28:42 GMT  |  David Rodriguez, Quantitative Analyst

USD/CAD Ratio: 1.64
Trading Forecast: Bearish

Forex Positioning in the USDCAD

 

USDCAD – The accuracy of our forex trading indicator’s forecasts for the USDCAD has been unimpressive as of late, as “the crowd” has remained very bullish the US Dollar against the Canadian Dollar despite astounding rallies. Typically we will see that the “crowd” will be on the wrong side of the market, favoring selling rallies and generally fading strong trends. Yet we see that forex traders seemingly have an unshakeable bullish bias on the USDCAD, and the SSI has continued to predict USDCAD losses despite its impressive strength. Currently, the ratio of long to short positions in the USDCAD stands at 1.65 as nearly 62% of traders are long. Yesterday, the ratio was at 1.87 as 65% of open positions were long. In detail, long positions are 3.7% lower than yesterday and 39.4% weaker since last week. Short positions are 9.2% higher than yesterday and 27.4% weaker since last week. The SSI is a contrarian indicator and signals more USDCAD losses. Discuss the USDCAD and other currencies in our forex forum.

Resources

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