Canadian Dollar Could be at Sentiment Extreme
USDCAD – Currency trading crowds have remained net-long the US Dollar against the Canadian Dollar since the pair traded near the 1.05 mark, giving consistent contrarian signal to stay short the USDCAD. Yet the most recent shift towards short positions and a pullback in long interest warns that momentum may slow and eventually reverse. The ratio of long to short positions in the USDCAD stands at 5.28 as nearly 84% of traders are long. Yesterday, the ratio was at 7.77 as 89% of open positions were long. In detail, long positions are 15.7% lower than yesterday and 10.2% weaker since last week. Short positions are 24.2% higher than yesterday and 44.3% stronger since last week. Open interest is 11.1% weaker than yesterday and 10.2% above its monthly average.
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