USDCAD – Trading crowds have turned strongly net-long the US Dollar against the Canadian Dollar, giving us contrarian signal that the pair could continue trading lower.
The ratio of long to short positions in the USDCAD stands at 2.79 as nearly 74% of traders are long. Yesterday, the ratio was at 2.46 as 71% of open positions were long. In detail, long positions are 7.8% higher than yesterday and 44.7% stronger since last week. Short positions are 4.6% lower than yesterday and 14.0% weaker since last week. Open interest is 4.2% stronger than yesterday and 15.9% above its monthly average.
The fact that crowds are net-long and continue buying gives us a bearish USDCAD trading bias.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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