Canadian Dollar Outlook Unclear
USDCAD – Exceedingly choppy US Dollar/Canadian Dollar sentiment leaves few clear signs on what to expect out of the currency pair. Traders have most recently flipped towards buying the US Dollar against the Canadian Dollar, giving contrarian signal that the pair could soon head lower. Yet we hesitate to take an aggressively bearish stance as the pair sticks to an exceedingly narrow trading range.
The ratio of long to short positions in the USDCAD stands at 1.94 as nearly 66% of traders are long. Yesterday, the ratio was at 2.63 as 72% of open positions were long. In detail, long positions are 10.2% higher than yesterday and 158.4% stronger since last week. Short positions are 49.4% higher than yesterday and 78.8% stronger since last week. The sharp jump in long interest warns of declines, but we may need to see further conviction to the downside before calling for a bigger move.
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