We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
USD/CAD FX Sentiment Hits Extremes as Pair Slips to Fresh 2016 Low

USD/CAD FX Sentiment Hits Extremes as Pair Slips to Fresh 2016 Low

2016-04-28 16:58:00
David Song, Currency Strategist
Share:

Talking Points:

- USD/CAD Retail Sentiment Hits Extremes as Pair Slips to Fresh 2016 Lows.

- USDOLLAR Holds April Low Despite Mixed 1Q GDP Report, Core PCE in Focus.

Avoid the pitfalls of trading by steering clear of classic mistakes. Review these principles in the "Traits of Successful Traders" series.

USD/CAD

USD/CAD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • USD/CAD may continue to track lower in May as it largely preserves the bearish trend from earlier this year and searches for support; would like to see the Relative Strength Index (RSI) push into oversold territory to favor a further decline following the failed attempts from earlier this month.
  • Nevertheless, Canada’s Gross Domestic Product (GDP) report may temper the recent strength in the loonie as the growth rate is expected to contract 0.2% in February, while the annualized reading is expected to hold steady at 1.5% for the second-consecutive month.
  • Downside targets remain in focus, with a break/close below 1.2510 (78.6% retracement) to 1.2520 (38.2% expansion) raising the risk for a move back towards the 1.2300 handle.
DailyFX SSI
  • The DailyFX Speculative Sentiment Index (SSI) shows retail FX remains caught on the wrong on the side market, with the crowd net-long since April 8, with the ratio pushing to fresh 2016 extremes going into May.
  • The ratio currently stands at +2.13 as 68% of traders are long, with long positions 16.2% higher from the previous week, while open interest stands 12.1% above the monthly average.

Why and how do we use the SSI in trading? View our video and download the free indicator here

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

11800.89

11887.22

11784.33

-0.62

168.70%

USD/CAD FX Sentiment Hits Extremes as Pair Slips to Fresh 2016 LowUSDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Despite the weaker-than-expected headline reading for 1Q GDP, the USDOLLAR bounces off the monthly low (11,784) amid the 1.9% expansion in Personal Consumption, while the core Personal Consumption Expenditure (PCE), the Fed’s preferred gauge for inflation, marked the highest reading since the first three-months of 2012.
  • With Personal Incomes & Spending anticipated to pick-up in March, a positive development may generate a larger rebound in the greenback as signs of stronger price growth put increase pressure on the Federal Open Market Committee (FOMC) to raise the benchmark interest rate sooner rather than later.
  • The failed attempt to test the next downside targets around 11,745 (50% retracement) to 11,759 (23.6% retracement) may spur a move back towards 11,898 (50% retracement), with a break/close above the region opening up the next topside region of interest around 11,951 (38.2% expansion) to 11,965 (23.6% retracement).
DailyFX Calendar

Click Here for the DailyFX Calendar

Read More:

Emotions Run High in Silver Trade

SPX500 Technical Analysis: Higher-Low Ahead of US Earnings

US DOLLAR Technical Analysis: Who’s Happier? Bears or Central Bankers

AUD/USD – Will the Real Trend Please Stand Up?

Get our top trading opportunities of 2016 HERE

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.