Canadian Dollar Forecast to Drop off of Highs
USDCAD – Retail trading crowds remain heavily net-long the US Dollar (ticker: USDOLLAR) against the Canadian Dollar as the USDCAD trades near significant lows. In most instances this would lead us to call for an important breakdown, but the USDCAD has been unable to break important range lows despite a hawkish Bank of Canada. In our opinion this signals that a bounce is likely through upcoming trade.
What could change that? We’ll keep a close eye on whether the Dow Jones FXCM Dollar Index breaks critical lows at the 9893 mark.
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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