Canadian Dollar May Soon Reverse Against US Dollar
USDCAD – Continued USDCAD declines have left the pair’s SSI ratio in strongly net-long territory, but it is interesting to note that said ratio has not hit further extremes as the pair drops to fresh lows. The ratio of long to short positions in the USDCAD stands at 2.95 as nearly 75% of traders are long. Yesterday, the ratio was at 3.48 as 78% of open positions were long. In detail, long positions are 2.5% lower than yesterday and 2.4% weaker since last week. Short positions are 14.9% higher than yesterday and 49.3% stronger since last week. The small drop in long interest and the relatively sharp climb in short positions leave us on the lookout for trend reversals as crowds begin to join the trend.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.