Canadian Dollar May Rally Further
USDCAD – Trading crowds remain heavily net-long the US Dollar against the Canadian Dollar, giving contrarian signal that the USDCAD may continue to decline. The ratio of long to short positions in the USDCAD stands at 2.12 as nearly 68% of traders are long. It bears mentioning that long positions are 13.0% lower than yesterday, but the 32.6% gain since last week underlines the fact that most are still buying. Short positions are 6.6% lower than yesterday and 36.7% weaker since last week. The SSI is a contrarian indicator and favors further USDCAD losses.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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