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. In fact traders have been steadily net-long since the pair crossed below the C$1.0400 mark, and we see little reason to change our bearish bias.
The ratio of long to short positions in the USDCAD stands at 2.01 as nearly 67% of traders are long. This is down from yesterday when that same ratio was at 2.4 to 1, but in reality we see little reason to call for a substantial turnaround.
The UDSCAD currently trades at the psychologically significant C$1.00 mark. A break lower would cement our overall bearish bias.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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