Canadian Dollar Forecast to Appreciate
USDCAD – Trading crowds remain quite indecisive on the US Dollar/Canadian Dollar currency pair, giving mixed signals and telling us that the USDCAD may do little other than consolidate into the final trading days of 2011.
The ratio of long to short positions in the USDCAD stands at 1.13 as nearly 53% of traders are long. Yesterday, the ratio was at 1.10 as 52% of open positions were long. In detail, long positions are 0.8% lower than yesterday and 11.7% stronger since last week. Short positions are 3.7% lower than yesterday and 43.4% weaker since last week.
The week-over-week shift towards crowd buying leaves us with a modestly bearish trading bias. Yet sharp declines seem unlikely into what is typically one of the slowest-moving periods of the trading year.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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