Canadian Dollar Forecast to Depreciate
USDCAD – Trading crowds have sold into US Dollar strength against the Canadian Dollar, giving contrarian signal that the USDCAD could continue higher. Yet an overnight moderation in positioning suggests the pair is less likely to surge into the final two weeks of trading for 2011.
The ratio of long to short positions in the USDCAD stands at -1.35 as nearly 57% of traders are short. Yesterday, the ratio was at -1.74 as 64% of open positions were short. In detail, long positions are 5.1% higher than yesterday and 1.1% weaker since last week. Short positions are 18.7% lower than yesterday and 36.2% stronger since last week.
When crowds are short but have ceased selling, the SSI gives moderate signal that the USDCAD could continue higher.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to firstname.lastname@example.org
Contact David via Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.