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 2.55 as nearly 72% of traders are long. Yesterday, the ratio was at 2.02 as 67% of open positions were long. In detail, long positions are 12.9% higher than yesterday and 17.4% stronger since last week. Short positions are 10.7% lower than yesterday and 31.5% weaker since last week. Open interest is 5.1% stronger than yesterday and 8.6% below its monthly average. The SSI is a contrarian indicator and signals more 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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