Canadian Dollar Likely to Continue Lower
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 2.84 as nearly 74% of traders are long. Yesterday, the ratio was at 2.12 as 68% of open positions were long. In detail, long positions are 5.8% lower than yesterday and 51.0% weaker since last week. Short positions are 29.8% lower than yesterday and 16.4% weaker since last week. Open interest is 13.5% weaker than yesterday and 41.5% below its monthly average. The strong drop in long positions warns that the pair could soon continue higher.