Canadian Dollar Outlook Positive
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 1.64 as nearly 62% of traders are long. Yesterday, the ratio was at -1.13 as 53% of open positions were short. In detail, long positions are 42.9% higher than yesterday and 11.5% weaker since last week. Short positions are 22.8% lower than yesterday and 63.4% weaker since last week. The SSI is a contrarian indicator and signals more USDCAD losses, but traders should be cautious in taking said signal as the pair trades in a narrow range.
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